1.7 Provisions

A provision is recognised when the Company has a present legal or constructive obligation as a result of
past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions (other than employee benefits) are not discounted to its
present value and are determined based on best estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best
estimates.

1.8 Revenue Recognition

The Company primarily earns revenue by providing Health care services.

Revenue is recognised when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity and specific criteria have been met as described below.

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as
revenue are net of indirect taxes, trade allowances, rebates and amounts collected on behalf of third parties
and is not recognised in instances where there is uncertainty with regard to ultimate collection. In such
cases revenue is recognised on reasonable certainty of collection.

Interest Income

Interest income from a financial asset is recognised using effective interest rate method. However, in
respect of certain financial assets where it is not probable that the economic benefits associated with the
transaction will flow to the entity and amount of revenue cannot be measured reliably, in such cases interest
income is not recognised.

1.9 Dividend Income

Dividends will be recognised when the company's right to receive has been established.

1.10 Employee benefits

1.10.1 Short term employee benefits

The undiscounted amount of short-term employee benefits is expected to be paid in exchange for the
services rendered by employees are recognised as an expense during the period when the employees
render the services.

1.10.2 Defined benefit plans

a) Gratuity

In accordance with the Payment of Gratuity Act, 1972, Company provides for gratuity, a defined retirement
plan (the “Gratuity Plan”) covering the eligible employees. The Gratuity Plan provides a lump sum payment
to vested employees at retirement, death, incapacitation or termination of employment, of an amount based
on the respective employee salary and the tenure of employment. Liability with regard to the Gratuity Plan
are determined by actuarial valuation as per the requirements of IndAS 19 as of the balance sheet date,
based upon which, the Company contributes the ascertained liabilities to Insurer.

b) Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate
contributions along with interest thereon is paid at retirement, death, incapacitation or termination of
employment. Both the employee and the Company make monthly contributions to the Regional Provident
Fund Commissioner equal to a specified percentage of the covered employee's salary.

c) Employee State Insurance Fund

Eligible employees are entitled to receive benefit under employee state insurance fund scheme. The
employer makes contribution to the scheme at a predetermined rate of employee's gross salary. The
Company has no further obligations under the plan beyond its monthly contributions. These contributions
are made to the fund administered and managed by the Government of India. contributions made on a
monthly basis which are charged to the Statement of Profit and Loss.

d) Leave encashment

All the employees who have completed their eligible service in the Company are eligible for leave
encashment as per policy of the Company and the same is paid to the eligible employee at retirement,
death, incapacitation or termination of employment. This amount, as calculated for all the eligible
employees, is charged to the Statement of Profit and Loss.

1.11 Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit
and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In
which case, the tax is also recognised in other comprehensive income or equity.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected to be paid or received after considering the
uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are off set only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in
the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred
tax is also recognised in respect of carried forward tax losses and tax credits.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in
which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted
or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities
and assets are reviewed at the end of each reporting period.

Minimum alternate tax (MAT)

Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The
Company recognizes Mat credit available as an asset only to the extent that there is convincing evidence
that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit
is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in
accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative
Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and
Loss and shown as “MAT Credit Entitlement.” The Company reviews the “MAT credit entitlement” asset at
each reporting date and writes down the asset to the extent the company does not have convincing
evidence that it will pay normal tax during the specified period.

1.12 Leases

At the date of commencement of the lease, the Company recognizes a right-of-use asset (“ROU”) and a
corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and low value leases,
the Company recognizes the lease payments as an operating expense on a straight-line basis over the term
of the lease.

As per Ind AS 116, Variable lease payments that do not depend on an index or rate and are not in substance
or fixed, such as those based on performance (i.e. percentage of sales) are not included as lease payments
and these payments are recognized in the statement of profit or loss in the period in which the event that
triggers the payment occurrence.

Hence, the company did not recognize any ROU as the lease agreement does not contain fixed Minimum
Lease payments.

1.13 Borrowing costs

Borrowing costs incurred for obtaining assets which takes substantial period to get ready for their intended
use are capitalized to the respective assets wherever the costs are directly attributable to such assets and in
other cases by applying weighted average cost of borrowings to the expenditure on such assets. Other
borrowing costs are treated as expense for the year.

Transaction costs in respect of long-term borrowings are amortized over the tenor of respective loans using
effective interest method.

1.14 Earnings per equity share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owner of the company.

• By the weighted number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to
equity shareholders and the weighted average number of share outstanding during the period is adjusted
for the effects of all dilutive potential equity shares.

1.15 Financial Instruments

i. Financial assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value
through profit or loss, are adjusted to the fair value on initial recognition.

a) Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

b) Financial assets at fair value through profit or loss (FVTPL)

A Financial asset that is not classified as AC or FVOCI are measured at FVTPL e.g. investments in mutual
funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is
recognized in profit or loss and presented net in the Statement of Profit and Loss within other gains/(losses)
in the period in which it arises.

c) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose Objective is achieved by
both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

B. Investments in subsidiaries

In respect of equity investments, the entity prepares separate financial statements and accounts for its
investments in subsidiaries at cost, net of impairment if any.

ii. Financial Liabilities

A. Initial recognition

All financial liabilities are recognized at fair value.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other
payables maturing within one year from the balance sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.

25. The Company has not received any information from any of the supplier of their being Micro, Small and
medium enterprises. Hence, the amounts due to Micro, Small and Medium enterprises outstanding as on
31-03-2024 was Rs. Nil

26. Balance Confirmations:

Confirmations of receivables and payable balances have not been received by the Company, hence,
reliance is placed on the balances as per books. In the opinion of the management, the amounts are
realizable /payable in the ordinary course of business.

27. Fair Value Measurements:

i) Fair Value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are
grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability of
significant input to the measurement, follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in and active market is determined using
valuation techniques which maximize the use of observable market date rely as little as possible on entity specific
estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

The Company's principal financial liabilities comprise loans and borrowings, trade and other payable. The main
purpose of these financial liabilities is to finance the Company's operations.

The Company's principal financial assets include loans. Trade and other receivables, and cash and cash
equivalents that derive directly from its operations. The Company also holds FVTPL investments and
investments in its associates.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's Board of Directors oversee
the management of these risks. The company's Board of Directors is supported by the senior management that
advises on financial risks and the appropriate financial risk governance framework for the Company. The senior
management provides assurance to the Company's board of directors that the company's financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company's policies and risk objectives.

The Carrying amounts reported in the statement of financial position for cash and cash equivalents, trade and
other receivables. Trade and other payables and other liabilities approximate their respective fair values due to
their short maturity.

27.1 Financial Risk Management

In course of its business, the company is exposed to certain financial risk such as market risk (Including
currency risk and other price risks), credit risk and liquidity risk that could have significant influence on the
company's business and operational/financial performance. The Board of directors reviews and approves
risk management framework and policies for managing these risks and monitor suitable mitigating actions
taken by the management to minimize potential adverse effects and achieve greater predictability to
earnings.

27.2 Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial
loss to the company. The company has adopted a policy of only dealing with creditworthy counterparties
and obtaining sufficient collateral, where appropriate, a means of mitigating the risk of financial loss from
defaults.

The company makes an allowance for doubtful debts/advances using expected credit loss model.

27.3 Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as pre
requirements. The Company's exposure to liquidity risk is minimal.

27.4Market Risk

Market risk is the risk that changes in market prices, such as foreign exchanges rates, interest rate And
equity prices, which will affect the company's income of the value of its holdings of financial Instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return.

a) Interest Rate Risk

Interest risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate Because
of changes in market interest rates. The company has exposure only to financial instruments at fixed
interest rates. Hence, the company is not exposed to significant interest rate Risk.

b) Price Risk

The company's exposure to equity securities price risk arises from investments held by the company and
classified in the balance sheet either at fair value through OCI or at fair value through profit and loss. The
majority of the company's equity instruments are publicly traded.

28. Employee Benefit:
a) Defined Contribution Plan:

Provident Fund and
State-defined Contribution Plans
Employers' contribution to employees' state insurance
Employers' contribution to employees' pension scheme 1995

The provident fund and the state defined contribution plans are operated by the Regional Provident Fund
Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll
cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the income
authorities. The contribution of the Company to the provident fund and other contribution plans for all
employees is charged to the Standalone Statement of Profit and Loss.

Estimation of Social Security Code:

The Company has recognized the following amounts in the Standalone Statement of Profit and Loss for the
year. The Parliament of India has approved the Code on Social Security, 2020 (the Code), which may impact
the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and
Employment, Government of India has released draft rules for the Code on November 13, 2020. Final rules
are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will
record related impact, if any.

29. Capital Management Risk

The Company's objective when managing capital is to safeguard the Company's ability to continue as a
going concern in order to provide returns for shareholders and benefits for stake holders. The company also
proposes to maintain an optimal capital structure to reduce the cost of capital. Hence, the company may
adjust any dividend payments, return capital to shareholders or issue new shares. Total capital is the equity
as shown in the statement of financial position. Currently, the company primarily monitors its capital
structure on the basis of gearing ratio. Management is continuously evolving strategies to optimize the
returns and reduce the risks. It includes plans to optimize the financial leverage of the company.

31. Other Statutory Information:

i. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Group for holding any Benami property.

ii. The Company does not have any transactions with companies struck off.

iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

iv. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

vi. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding 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 to or on behalf of the Ultimate Beneficiaries

vii. The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Group 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.

viii. The Company has not any such transaction which is not recorded in the books of account that have been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as search or survey or any other relevant provisions of the Income Tax Act, 1961.

32. Previous year's figures have been regrouped/reclassified wherever necessary, to conform to the current
period's classification in order to comply with the requirements of the amended Schedule III to the
Companies Act, 2013 effective 1st April 2021.

As per our report of even date

for _MGR & _Co For SAMSRITA LABS LIMITED

Chartered Accountants

Firm Registration No: 012787S

Sd/- Sd/-

Sd/- (K. Krishnam Raju) (K.N.V. Narendra Kumar)

(M. G. Rao) Whol e -time Director & Chairman Whole-time Director and CFO

Partner DIN: 00874650 DIN: 09223904

Membership No. 029893
UDIN:24029893BKACQN6859

Sd/-

Place: Hyderabad (Vani Nitesh Makhija)

Date :28-05-2024 Company Secretary