The description of the nature and purpose of each reserve within equity is as follows:

i Securities premium is received pursuant to the further issue of equity shares at a premium net of the share issue expenses. This is a non-distributable reserve except for the following instances where the the share premium account may be applied;

i) towards the issue of unissued shares of the Company to the members of the Company as fully paid bonus shares;

ii) for the purchase of its own shares or other securities;

iii) in writing off the preliminary expenses of the Company;

iv) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the Company; and

v) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the Company.

ii Retained earnings are the profits that the Company has earned till Date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

17.3 Details of the security and repayment terms :

Term Loan, CC/OD facility and Packing Credit facility are cumulatively secured againt

(i) Hypothecation :

-First and exclusive hypothecation charge on all existing and future current assets of the Company -First and exclusive hypothecation charge on all existing and future moveable fixed assets of the Company.

(ii) Mortgage :

-First and exclusive hypothecation charge on Factory land and building.

(iii) Personal Guarantee/s of Directors / Promotors

17.4 Cash Credit / Overdraft Facilities carry a rate of Interest of 9.55% p.a., computed on a monthly basis on the actual amount utilized, and are repayable on demand.

17.6 As per the register of charge on MCA records (MCA portal) the Compnay has created total charge of Rs. 2408 Lacs on the borrowings from Kotak Bank Ltd., whereas duing the year the Company has fully repaid the term loans hence the same is subject to the updation / revision.

21.1 The information as required to be disclosed pursuant under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006) has been determined to the extent such parties have been identified based on the information information available with the Company;

I Defined Benefit Plan:

The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and Loss and the funded status and amounts recognized in the balance sheet.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

I Expected future cash flows

The Description on funding arrangements and funding policy

The Company has Purchased an Insurance policy to settle the Gratuity Payment to their employees. Company may do the contribution every years based on the funding valuation carry out by insurance company based on the latest data provided by Company.

1. Financial instruments - Fair values and risk management A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels that are reclassified as applicable. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if their carrying amount is a reasonable approximation of fair value.

The following methods / assumptions were used to estimate the fair values:

Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between Fair value of lease liabilities is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, The fair value is determined by using the valuation model/technique with observable/ non-observable inputs and assumptions.

There are no financial instruments measured at fair value through Other Comprehensive Income.

The fair value is determined by using the valuation model/technique with observable/ non-observable inputs and assumptions.

There are no financial instruments measured at fair value through Other Comprehensive Income. Similarly, there are no financial instruments which are valued under category Level 1, Level 2 and Level 3.

The Company has exposure to the following risks arising from financial instruments:

Ý Credit risk ;

Ý Liquidity risk ; and

Ý Market risk

For detailed note on financial risk management refer to Note 38.

Terms and conditions of transactions with related parties

Outstanding balances at year end are generally unsecured. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2024, the company has not recorded any impairment of receivables relating to amounts owed by related parties.

36. CORPORATE SOCIAL RESPONSIBILITIES

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are promoting education, promoting gender equality by empowering women, healthcare, environment sustainability, destitute care & rehabilitation and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

Nature of CSR activities

Promoting education, promoting gender equality by empowering women, healthcare, environment sustainability, art and culture, destitute care and rehabilitation, disaster relief, and rural development projects.

Details of transactions with related party

“Kapurlal Tribhovandas Mehta Charitable Trust” is a trust jointly controlled by the KMPs of Medico Remedies Limited, is a related party. For the year ending March 31, 2024, the Company has made contributions to “Kapurlal Tribhovandas Mehta Charitable Trust” to fulfil its corporate social responsibilities. “Kapurlal Tribhovandas Mehta Charitable Trust” supports programs in the areas of education, rural development, healthcare, arts and culture, and destitute care. For details of related party transactions refer to Note 34.

37. LEASE

The Company adopted Ind AS 116 “Leases” and applied the standard to the lease contracts using the modified retrospective method. Consequently, the Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the right of use asset at value equal to the lease liability subject to the adjustments for prepayments and accruals.

Set out below are the carrying amounts of lease liabilities recognised and the movements during the year:

- The weighted average incremental borrowing rate used for discounting is 8%.

- Refer Note 28 for Interest on Lease Liabilities and Note 29 for Depreciation expense of right-of-use assets recognised in Statement of Profit and Loss during the year.

The summary of practical expedients elected on initial application are as follows :

- The Company has availed the exemption of not recognising right of use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

- The Company’s lease asset classes primarily consist of lease for buildings (Office Premises). Office premises are generally for a period not exceeding five years and are renewable by mutual consent, on mutually agreeable terms. There are no restrictions imposed by lease arrangement or contingent rent payable.

38. FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the company’s operations and to provide guarantees to support its operation. The Company’s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The company financial risk activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with the companies policies and risk objectives. The board of directors reviews and agrees policies for managing each of these risk, which are summarized below:

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market prices. Market risk comprises Interest rate risk and foreign currency risk. Financial instruments affected by market risk includes loans and borrowing, deposits and other non derivative financial instruments.

i) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of change in market interest rate. The company manages its interest risk in accordance with the companies policies and risk objective. Financial instruments affected by interest rate risk includes deposits with banks. Interest rate risk on these financial instruments are very low as interest rate is for the period of financial instruments.

ii) Foreign Currency Risk

The company continuously manages its risks associated with foreign currency by adopting various hedging strategies in consultation with internal and external experts. The Company has a system of regularly monitoring its currency wise exposures. The significant part of Company’s receivables are in US Dollars which operates as a natural hedge against each other. The Company has a policy not to borrow in a currency where it has no business exposure.

b) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. The company is exposed to credit risk from its financial activities including trade receivable, deposits with banks, financial institutions and other financial instruments. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

c) Financial Instruments and cash

Credit risk from balances with banks and financial institutions is managed in accordance with the company's policy. Investment of surplus are made only with approved counterparty on the basis of the financial quotes received from the counterparty.

d) Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they become due. The company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the company's reputation. The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company believes that the working capital is sufficient to meet its current operational requirements. Any short term- surplus cash generated, over and above the amount required for working capital management and other operational requirements, are retained as cash and investment in short term deposits with banks. The said investments are made in instruments with appropriate maturities and sufficient liquidity.

39. CAPITAL MANAGEMENT

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual and long-term strategic plans. The Company’s policy is aimed at combination of short-term and long-term borrowings. The Company monitors the capital structure on the basis of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose adjusted net debt is defined as total liabilities comprising interest bearing loans and borrowings excluding lease liabilities under Ind AS 116, less cash and cash equivalents, bank balance and current investments. Adjusted equity comprises Total equity.

40. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

a) Relate to Taxation / Statutory dues;

(i) TDS; as per Traces website demand is reflected as Rs.4.17 Lakhs the company is in process of the identifying the reason for such demand and in process of revising/rectifying the TDS returns.

(ii) Income Tax; A total demand of Rs. 20.02 Lakhs (Income Tax along with accrued interest) for A.Y. 2010-11 & A.Y. 2017-18 is erroneously showing as outstanding to be payable on the Income Tax Portal. The company has already settled this demand by opting the Vivad-se-Vishwas Scheme and no demand is outstanding to be paid by the Company. The said issue is conveyed to the Income Tax Department and accordingly the process to remove the same from online portal is ongoing.

(iii) There is Outstanding demand on Income Tax website reflecting Rs.0.06 Lakhs pertaining to AY 2023-24.

b) The Company is not involved in other disputes, lawsuits, claims, inquiries and proceedings including commercial matters that arise from time to time in the ordinary course of business. The Company believes that there are no such pending matters that are expected to have any material adverse effect on its financial statements in any given accounting period.

c) Estimated amount of contracts remaining to be executed on capital account (including development of intangible assets) and not provided for Rs. 5 Lakhs (Previous year - Rs. 5 Lakhs).

41. There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

42. Previous year figures have been regrouped wherever necessary to confirm to current year classification.

43. ADDITIONAL REGULATORY DISCLOSURES AS PER SCHEDULE III OF COMPANIES ACT, 2013

i. No proceedings have been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

ii. All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the years ended 31st March, 2024 and 31st March, 2023.

iii. The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

iv. The Company has not advanced loaned or invested funds to any other person(s) or entity(ies) including foreign entities (Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

v. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, (a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vi. The Company has not operated in any crypto currency or Virtual Currency transactions.

vii. There were no transactions not recorded in the Books of Accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act 1961.

viii. There are no transactions with the Companies whose name are struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the year ended 31st March 2024 and 31st March 2023

ix. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

x. The Company have not entered into any scheme of arrangement which has an accounting impact on the current or previous financial year.

44. DISCLOSURES REQUIRED UNDER IND-AS AND SCHEDULE III OF COMPANIES ACT,2013 (AS AMENDED)

The Company has made the disclosures at appropriates place regarding the relevant items or transactions of balance sheet and statement of profit and loss. Any non-disclosure is due to non occurrence of related transaction.