అకౌంట్స్ గమనికలుBeta Drugs Ltd.

Mar 31, 2025

26.16. Contingencies and Provisions

A provision is recognized when the Company has a present obligation as a result of past events. It is probable that an
outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable
estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate
of the expenditure 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 estimate.

A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit
is remote.

26.17 Internal Control Policy and BCP Management: The Company has a comprehensive system of Internal Controls
to safeguard its assets against loss from unauthorized use and to ensure reliability of financial reporting. The
management assesses the operating effectiveness of these controls on regular basis. All the required security checks

i.e., physical security of the company premises and its database are properly installed, daily backup is being done for
all the accounting and related data. The internal auditor in his quarterly report, also confirms about the effectiveness
of the internal control measures. The company maintains a system of internal controls designed for effectiveness and

efficiency of operations, compliance and regulations. The company has a cloud-based ERP system (maintained by
TATA Consultancy Services) in which the data remains safe on cloud and can be accessed and updated on real time
basis from anywhere with defined access user rights.

The system of internal controls monitors and ensures process for:

• Effectiveness and efficiency of operations;

• Reliability of financial reporting;

• Compliance with applicable laws and regulations.

26.18. Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account- Nil
(previous year- Nil).

b) Contingent Liabilities: Rs. 1,67,81,793.00

. Claims against the Company not acknowledged as debt -Nil (previous year - Nil).

. Liabilities in respect of Income Tax, Service Tax, Sales Tax and other material statutory dues have been
accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any,
arising at the time of assessments will be accounted for in the year in which assessments are completed.

26.19. Issued, Subscribed & Paid-up Capital:

A. ) Issued, Subscribed and Paid-up capital of the company is Rs. 10,09,45,530.00 (Divided into 1,00,94,553.00 shares
of Rs. 10 each). During the financial year 2024-25, the company has further issued 70 fully paid-up equity shares of
face value of INR 10 each, at a price of INR 1,653.40 per Equity Share including a premium of INR 1,643.40 per
Equity Share, on preferential basis, in a single tranche.

B. ) During the financial year 2024-25, the Company has issued 480693 no. of Equity Shares as fully paid up by way
of bonus shares in the ratio of 1:20.

26.20. Reserves & Surplus:

-The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier year plus the
surplus earned during the year. Total amount of surplus outstanding as on 31.03.2025 is Rs. 1,18,94,26,198.71
which includes share premium of Rs. 23,47,09,156.98 and Free Reserves of Rs. 95,47,17,041.73.

26.22 During the FY 2024-25 company has allotted the following securities under Preferential Issue dated 27th November,
2024 as per details below:-

a) 7,07,651 fully paid up unsecured compulsory convertible debentures (CCD) having face value of INR 1,653.40
each, carrying a monthly coupon rate of 0.65% in a single tranche, at a conversion price of INR 1,653.40 per
Equity Share, such that the total number of Equity Shares to be issued pursuant to conversion of all CCDs shall
not exceed 7,07,651 Equity Shares

26.23. In the opinion of the Directors, “Current Assets” and “Loans &Advances” are approximately of the value
stated in the Balance Sheet, if realized in the ordinary course of business and to the best of their knowledge.
Provisions for all the known liabilities have been made and, as certified, all the contractual and statutory
obligations have been duly complied with.

26.24. Depreciation/Amortization

The management estimates the useful life of existing fixed assets as follows:-

Building 30 years

Furniture & Fixtures 10 years

Machinery 15 years

Lab Equipment 10 years

Equipment (Other) 5 years

Vehicles 8 years years

For these class of assets, based on internal assessment and independent technical evaluation carried out by external
valuers, the management believes that the useful lives as given above best represent the period over which
management expects to use these assets.

26.26. Non-Current Investments:

Investment in Joint ventures and Associates are accounted for using the equity method of accounting. Under the equity
method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Dividends
received or receivable from associates or joint ventures are recognized as a reduction in the carrying amount of the
investment.

Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made
and no dividend was received during the year.

The provisions of Section 186 of the Companies Act 2013 have been complied with.

The company has the following investments as on 31.03.2025 in entities as mentioned below:

(a) Beta Drugs Ltd. has an investment in Adley Formulations Private Limited (CIN: U24303HR2018PTC076347)
amounting Rs.1,26,00,000.00

(b) Beta Drugs Ltd. has an investment in Adley Lab Limited (CIN: U24231PB1992PLC051220) amounting Rs.

4.50.40.000. 00.

(c) Beta Drugs Ltd. has an investment in Beta Research Pvt. Ltd. (CIN: U24303HR2022PTC104598) amounting Rs.

1.00. 000.00.

26.27. Taxes

-The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate, till
finalization of assessments no undisputed dues or amounts were outstanding or remaining unpaid as at 31^st March,
2025.

-Disputed Income tax demand amounting to Rs. 12,122/- for A.Y. 2020-21 and Rs. 72,51,730/- for A.Y. 2021-22 is
outstanding and appeal filed against the same is under process as on 31.03.2025. The said demand was raised by the
department on account of non-compliance of notice u/s 133(6) issued to the third parties, however, the said third
parties had duly filed the response to the said notices received by them. The company has filed an appeal providing
acknowledgements of the replies filed by those third parties.

-The current tax expense shown in the Profit & Loss A/c for the period FY 2024-25 is Rs. 5,69,54,277.95.

26.28. Segment Reporting

Since the Company primarily operates in one segment (i.e., Manufacturing of Oncology medicines), therefore
segment reporting as required under Ind AS - 108 is not applicable. Regarding the geographical segments, the

26.31. Particulars relating to corporate social responsibility

The Company has provided for the corporate social responsibility as per Section 135 of the Companies Act 2013 i.e.,
Rs.55,48,527.00 during the year. The actual amount spent during the financial year was Rs. 55,98,527.00 and there
is no outstanding provision as on 31^st March 2025.

26.32. Impairment of Assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of Ind AS-
36 on “Impairment of Assets” as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognized
for the year.

26.33. Property, Plant and Equipment and Intangible assets:

- During the financial Year 2024-25 there was an addition of Rs. 13,13,94,000.00 under the head Land.

- During the financial Year 2024-25 there was an addition of Rs. 71,97,879.48 under the head Building.

- During the financial year, there was net additions of Rs 6,37,48,986.71 to Plant & Machinery, Furniture &Fixtures,
Office Equipment, Vehicles & Computers including the assets transferred from WIP.

- During the financial Year 2024-25 there was an addition of Rs. 4,23,78,907.60 under the head Intangible Assets.

26.35. Micro, Small & Medium Enterprises

Based on the information presently available, total outstanding as on 31.03.2025 is Rs. 3,30,47,925.00 to micro
or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

26.40. Exceptional items

The Company discloses certain financial information both including and excluding exceptional items. The
presentation of information excluding exceptional items allows a better understanding of the underlying operating
performance of the Company and provides consistency with the Company’s internal management reporting.
Exceptional items are identified by virtue of either their size or nature so as to facilitate comparison with prior
periods and to assess underlying trends in the financial performance of the Company. Exceptional items can
include, but are not restricted to, gains and losses on the disposal of assets/ investments, impairment charges,
exchange gain/ (loss) on long term borrowings/ assets and changes in fair value of derivative contracts.

The exceptional item of ?4.57 crores mentioned above & in the Profit & Loss account (Note No. 24), represents a
one-time expense incurred as professional fees related to the fund-raised through a preferential issue during the
year. To provide a true and fair view of the operating margins, this amount has been classified under exceptional
items (Note No. 24) and excluded from other expenses (Note No. 23).

26.41. Other statutory information

i. No proceedings have been initiated during the year or are pending against the Company as at March 31,
2025 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.

ii. The Company does not have any trading in Crypto Currency or Virtual Currency.

iii. The Company does not have any transactions or balances with a Companies struck off under section 248
of the Companies Act, 2013 or Section 560 of the Companies Act 1956.

iv. The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act,
1961.

v. Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

vi. The Company has not received any fund from any person(s) or entity(is), including foreign entities
(Funding Party) 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.

vii. No charge is pending to be registered beyond statutory period with ROC.

viii. The company has not used the borrowings from banks and financial institutions for any other purpose
other than for the specific purpose for which it was taken.

ix. The Company have defined agreement with the Debtors regarding the credit payment period given and
ageing is done accordingly in Financial Statement.

x. As there is no specific agreements with the creditors, hence the creditors ageing is done as per the date of
invoice received.

26.42. Total count of debtors in M/s Beta Drugs Limited is 150 , and creditors count is 224, Balance confirmation were
sent to all and confirmation reply came from more than 50% of the total count.

26.43. Figures for previous year have been regrouped/rearranged where necessary to confirm to the current year’s
presentation.

In terms of our attached report of even date. For and on behalf of the Board of Directors

For KHURANA SHARMA & CO.

CHARTERED ACCOUNTANTS
F R No. -010920N

Sd /-

CA VIBHOR KHURANA
PARTNER
M No. -568524

Sd/- Sd/-

Dated: 15/05/2025 Rahul Batra Varun Batra

Place: Chandigarh (Director) (Director)

UDIN: 25568524BMKPNN9829 DIN: 02229234 DIN:02148383

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Mar 31, 2024

25.1. Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account- Nil (previous year- Nil).

b) Contingent Liabilities: Rs. 99,54,076.00

. Claims against the Company not acknowledged as debt -Nil (previous year - Nil).

. Liabilities in respect of Income Tax, Service Tax, Sales Tax and other material statutory dues have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessments will be accounted for in the year in which assessments are completed.

25.2. Issued, Subscribed & Paid-up Capital:

Issued, Subscribed and Paid-up capital of the company is Rs. 9,61,37,900.00 (Divided into 96,13,790.00 shares of Rs. 10 each). During the financial year 2023-24, the company has no further issue of capital.

25.3. Reserves & Surplus:

-The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier year plus the surplus earned during the year. Total amount of surplus outstanding as on 31.03.2024 is Rs. 1,06,39,65,140.20 which includes share premium of Rs. 23,94,01,048.98 and Free Reserves of Rs. 82,45,64,091.22.

25.5. In the opinion of the Directors, "Current Assets" and "Loans &Advances" are approximately of the value

stated in the Balance Sheet, if realized in the ordinary course of business and to the best of their knowledge. Provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers, the management believes that the useful lives as given above best represent the period over which management expects to use these assets.

25.8. Non-Current Investments:

Investment in Joint ventures and Associates are accounted for using the equity method of accounting. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Dividends received or receivable from associates or joint ventures are recognized as a reduction in the carrying amount of the investment.

Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made and no dividend was received during the year.

The provisions of Section 186 of the Companies Act 2013 have been complied with.

The company has the following investments as on 31.03.2024 in entities as mentioned below:

(a) Beta Drugs has an investment in Adley Formulations Private Limited (CIN: U24303HR2018PTC076347) amounting Rs.1,26,00,000.00

(b ) Beta Drugs has an investment in Adley Lab Limited (CIN: U24231PB1992PLC051220) amounting Rs.

4.50.40.000. 00.

(c) Beta Drugs has an investment in Beta Research Pvt. Ltd. (CIN: U24303HR2022PTC104598) amounting Rs.

1.00. 000.00.

The company had investment in Beta UBK International Pvt. Ltd. (Uzbekistan) till November 2023. The Board of Directors of the Company at its meeting held on 7th November, 2023, inter alia, had considered and approved to write off the total investment made by the company in Beta UBK International Private Limited and it ceased to be subsidiary of the company.

25.9. Taxes

- The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate, till finalization of assessments no undisputed dues or amounts were outstanding or remaining unpaid as at 31^st March, 2024. -Disputed Income tax demand amounting to Rs. 12,122/- for A.Y 2020-21 and Rs. 90,64,680/- for A.Y 2021-22 is outstanding and appeal filed against the same is under process as on 31.03.2024. The said demand was raised by the department on account of non-compliance of notice u/s 133(6) issued to the third parties, however, the said third parties had duly filed the response to the said notices received by them. The company has filed an appeal providing acknowledgements of the replies filed by those third parties.

-The current tax provision shown in the Balance Sheet is Rs. 1,86,78,501.27 after utilization of the advance tax and TDS of Rs. 5,59,92,646.82.

25.10. Segment Reporting

Since the Company primarily operates in one segment (i.e., Manufacturing of Oncology medicines), therefore segment reporting as required under Ind AS - 108 is not applicable. Regarding the geographical segments, the company has an export turnover of Rs. 44,48,15,702.67 (Including Direct and Indirect Exports) and the domestic turnover of Rs. 1,53,13,91,321.04.

25.11. Related Party Disclosures (Ind AS-24)

Related parties & their relationship and related party''s transactions.

The above disclosure of the related party and the transactions entered have been made as per Ind AS-24.

The transactions have been carried at arm''s length price (ALP).

*Rs. 35.00 Lakh has been further provided to M/s Adley Lab Limited and Rs. 180.60 Lakhs has been further provided to M/s Adley Formulations Pvt Ltd during F.Y 2023-24 for working capital requirements. The loan has an outstanding

25.13 Particulars relating to corporate social responsibility

The Company has provided for the corporate social responsibility as per Section 135 of the Companies Act 2013 i.e., Rs. 41,27,644.00 during the year. The actual amount spent during the financial year was Rs. 41,27,700.00 and there is no outstanding provision as on 31^st March 2024.

25.14. Impairment of Assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of Ind AS-36 on "Impairment of Assets" as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognized for the year.

25.15. Property, Plant and Equipment and Intangible assets:

- During the financial Year 2023-24 there was no addition under the head Land.

- During the financial Year 2023-24 there was an addition of Rs. 1,65,38,815.93 under the head Building.

- During the financial year, there was net additions of Rs 5,82,81,119.58 to Plant & Machinery, Furniture &Fixtures, Office Equipment, Vehicles & Computers including the assets transferred from WIP. The company has received capital grant of Rs. 3,63,06,653.00 from The Government of India under Industrial Development Scheme for capital subsidy in October -23 which was reduced from the Gross Block of Plant and Machinery.

- During the financial Year 2023-24 there was an addition of Rs. 1,42,38,441.82 under the head Intangible Assets.

25.17. Micro, Small & Medium Enterprises

Based on the information presently available, total outstanding as on 31.03.2024 is Rs.2,61,98,873.17 to micro or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

25.22. Other statutory information

i. No proceedings have been initiated during the year or are pending against the Company as at March 31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. The Company does not have any trading in Crypto Currency or Virtual Currency.

iii. The Company does not have any transactions or balances with a Companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act 1956.

iv. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

v. Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

vi. The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) 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.

vii. No charge is pending to be registered beyond statutory period with ROC.

viii. The company has not used the borrowings from banks and financial institutions for any other purpose other than for the specific purpose for which it was taken.

ix. The Company have defined agreement with the Debtors regarding the credit payment period given and ageing is done accordingly in Financial Statement.

x. As there are no specific agreements with the creditors, hence the creditors ageing is done as per the date of invoice received.

25.23. Total count of debtors in M/s Beta Drugs Limited is 156, and creditors count is 404, Balance confirmations were sent to all and confirmation reply came from more than 50% of the total count.

25.24. Figures for previous year have been regrouped/rearranged where necessary to confirm to the current year''s presentation.

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Mar 31, 2023

Internal Control Policy and BCP Management: The Company has a comprehensive system of Internal Controls to safeguard its assets against loss from unauthorized use and to ensure reliability of financial reporting. The management assesses the operating effectiveness of these controls on regular basis. All the required security checks i.e., physical security of the company premises and its database are properly installed, daily backup is being done for all the accounting and related data. The internal auditor in his quarterly report, also confirms about the effectiveness of the internal control measures. The company maintains a system of internal controls designed for effectiveness and efficiency of operations, compliance and regulations. To further strengthen the controls, the company has developed a cloud-based ERP system with the help of Tata Consultancy Services in which the data will remain safe on the cloud and can be accessed and updated on real time basis from anywhere with defined access user rights.

The system of internal controls monitors and ensures process for:

• Effectiveness and efficiency of operations;

• Reliability of financial reporting;

• Compliance with applicable laws and regulations.

> Impact of Covid-19: The company is in the business of manufacturing and supplying pharmaceuticals products which is categorized under essential goods. There is no problem in sourcing of raw material, packing material, consumables or any kind of machinery and tools. Also, the company is closely monitoring the internal and external environment to see any changes and their impact to make proper decisions in the best interest of the company. The impact of COVID-19 during F.Y 2022-23 is almost negligible. The Company will continue to monitor any material changes to future economic conditions.

Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account- Nil (previous year- Nil).

b) Contingent Liabilities: Rs. 74,36,462.00

. Claims against the Company not acknowledged as debt -Nil (previous year - Nil).

. Liabilities in respect of Income Tax, Service Tax, Sales Tax and other material statutory dues have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessments will be accounted for in the year in which assessments are completed.

Issued, Subscribed & Paid-up Capital:

Issued, Subscribed and Paid-up capital of the company is Rs. 9,61,37,900.00 (Divided into 96,13,790.00 shares of Rs.

10 each). During the financial year 2022-23, the company has no further issue of capital.

Reserves & Surplus:

-The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier year plus the

surplus earned during the year. Total amount of surplus outstanding as on 31.03.2023 is Rs. 86,64,13,687.44 which

includes share premium of Rs. 23,94,01,048.98 and Free Reserves of Rs. 62,70,12,638.46.

In the opinion of the Directors, “Current Assets” and “Loans &Advances” are approximately of the value stated in the Balance Sheet, if realized in the ordinary course of business and to the best of their knowledge. Provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

Depreciation/Amortisation

The management estimates the useful life of existing fixed assets as follows:-

Building 30 years

Furniture & Fixtures 10 years

Machinery 15 years

Lab Equipment 10 years

Equipment (Other) 5 years

Vehicles 8 years

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers, the management believes that the useful lives as given above best represent the period over which management expects to use these assets..(Refer note 3.4).

Non-Current Investments:

Investment in Joint ventures and Associates are accounted for using the equity method of accounting. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Dividends received or receivable from associates or joint ventures are recognized as a reduction in the carrying amount of the investment.

Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made and no dividend was received during the year.

The provisions of Section 186 of the Companies Act 2013 have been complied with.

The company has the following investments as on 31.03.2023 in entities as mentioned below:

(a) Beta Drugs has an investment in Beta UBK International Private Limited, Uzbekistan amounting to Rs. 77,89,905.49 as on 31.03.2023.

The Joint Venture has been liquidated in the mid of F.Y 2022-23, however, it is mutually agreed that the consideration will be returned as per the terms and conditions laid in the liquidation agreement. Till 31.03.2023 the company has not received any amount against the investment made.

(b) Beta Drugs has an investment in Adley Formulations Private Limited (CIN: U24303HR2018PTC076347) amounting Rs.1,26,00,000.00

(c ) Beta Drugs has an investment in Adley Lab Limited (CIN: U24231PB1992PLC051220) amounting Rs.

4.50.40.000. 00.

(d) Beta Drugs made and investment in Beta Research Pvt. Ltd. (CIN: U24303HR2022PTC104598) amounting Rs.

1.00. 000.00 on 14-12-2022.

Taxes

-The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate, till finalization of assessments no undisputed dues or amounts were outstanding or remaining unpaid as at 31^st March, 2023.

-Disputed Income tax demand amounting to Rs. 12,122/- for A.Y 2020-21 and Rs. 90,64,680/- for A.Y 2021-22 is outstanding and appeal filed against the same is under process as on 31.03.2023. The said demand was raised by the department on account of non-compliance of notice u/s 133(6) issued to the third parties, however, the said third parties had duly filed the response to the said notices received by them. The company has filed an appeal providing acknowledgements of the replies filed by those third parties.

-The amount of tax credit determined shall be carried forward up-to fifteen assessment years immediately succeeding the assessment year in which tax credit becomes allowable.

-The current tax provision shown in the Balance Sheet is Rs. 2,94,28,046.01 after utilization of the advance tax and TDS of Rs. 3,74,10,664.44.

Segment Reporting

Since the Company primarily operates in one segment (i.e., Manufacturing of Oncology medicines), therefore segment reporting as required under Ind AS - 108 is not applicable. Regarding the geographical segments, the company has an export turnover of Rs. 27,82,93,667.94 (Including Direct and Indirect Exports) and the domestic turnover of Rs. 1,30,04,52,205.51.

The above disclosure of the related party and the transactions entered have been made as per Ind AS-24.

The transactions have been carried at arm’s length price (ALP).

*Rs. 47.50 Lakh has been further provided to M/s Adley Lab Limited during F.Y 2022-23 for working capital requirements. The loan has an outstanding balance of Rs. 1,98,46,255.00 as on 31^st March 2023. No further loan has been taken/ repaid by M/s Adley Formulations Pvt. Ltd. against the unsecured loan granted for working capital requirements, which has an outstanding balance of Rs. 2,86,22,788 as on 31^st March 2023. The rate of interest on these loans has been taken at yield method i.e. 9% as computed.

Particulars relating to corporate social responsibility

The Company has provided for the corporate social responsibility as per Section 135 of the Companies Act 2013 i.e., Rs. 29,17,943.00 during the year. The actual amount spent during the financial year was Rs. 29,28,000.00 and there is no outstanding provision as on 31^st March 2023.

Impairment of Assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of Ind AS-36 on “Impairment of Assets” as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognized for the year.

Property, Plant and Equipment and Intangible assets:

- During the financial Year 2022-23 there was no addition under the head Land.

- During the financial Year 2022-23 there was an addition of Rs. 1,10,08,453.01 under the head Building.

- During the financial year, there was net additions of Rs 5,07,81,557.17 to Plant & Machinery, Furniture &Fixtures, Office Equipment, Vehicles & Computers including the assets transferred from WIP.

The additions of Rs. 1,19,033.33 was made to the R&D Block.

- During the financial Year 2022-23 there was an addition of Rs. 71,86,027.07 under the head Intangible Assets.

Deferred Tax Assets & Liabilities

During the FY 2021-22 the company has made Deferred Tax Provision (Asset) as follows:

Micro, Small & Medium Enterprises

Based on the information presently available, total outstanding as on 31.03.2023 is Rs.14,60,36,155.61 to micro or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

Other statutory information

i. No proceedings have been initiated during the year or are pending against the Company as at March 31, 2022 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made thereunder.

ii. The Company does not have any trading in Crypto Currency or Virtual Currency.

iii. The Company does not have any transactions or balances with a Companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act 1956.

iv. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

v. Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

vi. The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) 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.

vii. No charge is pending to be registered beyond statutory period with ROC.

viii. The company has not used the borrowings from banks and financial institutions for any other purpose other than for the specific purpose for which it was taken.

ix. The Company have defined agreement with the Debtors regarding the credit payment period given and ageing is done accordingly in Financial Statement.

x. As there is no specific agreements with the creditors, hence the creditors ageing is done as per the date of invoice received.

Balance confirmation has been sent to all the Debtors and Creditors by way of electronic mail. Out of 169 no. of creditors, confirmations received from 108 and out of 93 no. debtors, confirmation are received from 64. Others are assumed to have confirmed on the basis of non reply.

Figures for previous year have been regrouped/rearranged where necessary to confirm to the current year’s presentation.

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Mar 31, 2021

Internal Control Policy and BCP Management: The Company has a comprehensive system of Internal Controls to safeguard its assets against loss from unauthorized use and to ensure reliability of financial reporting. The management assesses the operating effectiveness of these controls on regular basis. All the required security checks i.e., physical security of the company premises and its database are properly installed, daily backup is being done for all the accounting and related data. The internal auditor in his quarterly report, also confirms about the effectiveness of the internal control measures. The company maintains a system of internal controls designed for effectiveness and efficiency of operations, compliance and regulations. To further strengthen the controls, the company has developeda cloud-based ERP system with the help of Tata Consultancy Services in which the data will remain safe on the cloud and can be accessed and updated on real time basis from anywhere with defined access user rights.

The system of internal controls monitors and ensures process for:

• Effectiveness and efficiency of operations;

• Reliability of financial reporting;

• Compliance with applicable laws and regulations.

Impact of Covid-19: The Ministry of Home Affairs on March 24, 2020 notified a nation-wide lockdown in India to contain the outbreak of COVID-19 pandemic due to which there has been several restrictions imposed by the Government across the globe on the travel, movement of goods and transportation considering public health and safety measures. The company is in the business of manufacturing and supplying pharmaceuticals products which was categorized under essential goods and the production facility of the company remained operational following enhanced safety guidelines. The company was closely monitoring the internal and external environment and information during the lock-down period to enable it to make proper decisions in the best interest of the company. During this period, the sales of the company''s product were though affected for the months of April and May, however, it did not make any material financial impact in overall demand of the products, its liquidity, assets debt servicing abilities and supply chain operations during the financial year as a whole. The actual impact of the global health pandemic may be different from that which has been estimated, as the COVID-19 situation evolves in India and globally. The company is and will continue to closely monitor any material changes to future economic conditions.

NOTE 4 : OTHER NOTES TO ACCOUNTS (Forming part of Accounts)

FOR THE YEAR ENDED 31^st MARCH, 2021

Issued, Subscribed & Paid-up Capital:

Issued, Subscribed and Paid-up capital of the company is Rs. 9,61,37,900.00 (Divided into 96,13,790.00 shares of Rs. 10 each). During the financial year 2020-21, the company has no further issue of capital.

Reserves & Surplus:

-The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier year plus the surplus earned during the year. Total amount of surplus outstanding as on 31.03.2021 isRs. 53,80,30,641.46which includes share premium of Rs. 23,94,01,048.98 and Free Reserves of Rs. 29,86,29,592.48.

Non-Current Investments:

Investment in Joint ventures and Associates are accounted for using the equity method of accounting. Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize Dividends received or receivable from associates or joint ventures are recognized as a reduction in the carrying amount of the investment.

Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made and no dividend was received during the year.

The provisions of Section 186 of the Companies Act 2013 have been complied with.

The company has the following investments as on 31.03.2021 in entities as mentioned below:

(a) Beta Drugs had made an investment in Beta UBK International Private Limited, Uzbekistan amounting Rs. 35,20,592.62 in Financial Year 2018-19.Now the company has further invested amounted to Rs. 42,69,312.87 during the financial year 2020-21 in compliance with all statutory requirements with total investment of Rs. 77,89,905.49 as on 31.03.2021.

(b) Beta Drugs has an investment in Adley Formulations Private Limited (CIN: U24303HR2018PTC076347) amounting Rs.1,26,00,000.00

(b) Beta Drugs has an investment in Adley Lab Limited (CIN: U24231PB1992PLC051220) amounting Rs.

4,50,40,000.00

Taxes

- The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate, till finalization of assessments and no disputed dues or amounts were outstanding or remaining unpaid as at31^st March, 2021.

-The amount of tax credit determined shall be carried forward up-to fifteen assessment years immediately succeeding the assessment year in which tax credit becomes allowable.

-The current tax provision shown in the Balance Sheet is Rs. 57,45,458.38 after utilization of the advance tax and TDS of Rs. 1,15,18,849.29 and MAT credit utilization of Rs. 1,57,59,141.99 Segment Reporting

Since the Company primarily operates in one segment (i.e., Manufacturing of Oncology medicines), therefore segment reporting as required under Ind AS -108is not applicable. Regarding the geographical segments, the company has an export turnover of Rs. 11,84,23,042.58(Including Direct and Indirect Exports) and the domestic turnover of Rs. 67,61,41,076.11.

*Rs. 32 Lakh has been repaid by M/s Adley Formulations Private Limited against the unsecured loan granted in the previous year for working capital requirements. The loan has an outstanding balance of Rs. 1,13,94,883.00 as on 31^st March 2021.The company had also granted an unsecured loan to M/s Adley Lab Limited, its wholly owned subsidiary in the previous year which has an outstanding balance of Rs. 1,43,57,915.00 as on 31^st March 2021. The rate of interest on these loans has been taken at yield method i.e. 9% as computed.

Impairment of Assets

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of Ind AS-36 on "Impairment of Assets" asnotified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognized for the year.

Fixed Assets:

- During the financial year 2020-21 the company has capitalized assets worth Rs 7,50,000.00 from the Work in Progress.

- During the financial Year 2020-21 there was no addition under the head Land.

- During the financial Year 2020-21 there was an addition of Rs. 1,76,98,682.41 under the head Building work in progress.

- During the financial year, there was addition of Rs. 1,26,15,104.48 to Plant & Machinery, Furniture &Fixtures, Office Equipment, Vehicles & Computers including the assets transferred from WIP.

The additions of Rs. 31,53,094.25 was made to the R&D Block.

- During the financial Year 2020-21 there was an addition of Rs. 2,95,844.88 under the head Intangible Assets.

Micro, Small & Medium Enterprises

Based on the information presently available, total outstanding as on 31.03.2021 is Rs.8,23,45,996.33 to micro or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

Corporate Social Responsibility: The Company has provided for the corporate social responsibility as per Section 135 of the Companies Act 2013 i.e., Rs. 17,38,358.00 during the year. The total amount to be spent during the year was Rs.32,50,475.30 including the amount unspent carried forward from last year. The actual amount spent during the financial year was Rs. 21,71,255.00 and the outstanding provision as on 31^st March 2021 amounting Rs. 10,79,220.30 will be spent in the next financial year. The company has planned to utilize the outstanding amount for treatment of COVID patients in the first quarter of FY 2021-22.

Balance confirmation has been sent to all the Debtors and Creditors by way of electronic mail.

4.21. Figures for previous year have been regrouped/rearranged where necessary to conform to the current year''s presentation.

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Mar 31, 2018

Right, Preferences and Restriction attached to shares

Equity shares

The company has only one class of Equity having a par value Rs. 10.00 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors is subject to the approval of the shareholders in ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

a. Loans has been guaranteed by director or others

i. Vijaya bank (Machinery) has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra, Mr. Varun Batra, Mr. Rahul Batra, Smt. Neeraj Batra And Mr. Balwant Singh of Director''s of Rs. 67.47 LACS

ii. Vijaya bank (Machinery) has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra, Mr. Varun Batra, Mr. Rahul Batra, Smt. Neeraj Batra And Mr. Balwant Singh of Directors of Rs. 38.97 lacs

iii. Vijaya bank (Building) has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra, Mr. Varun Batra, Mr. Rahul Batra, Smt. Neeraj Batra And Mr. Balwant Singh of Directors of Rs. 22.61 lacs

b. Term of Repayment of Loan

i. Machinery Loan was taken from Vijaya Bank during FY 2015 and carries interest @ 13.20% to p.a. The loan is repayable in 63 equal installment of Rs. 335980/- each along with interest, from the date of loan. The loan is secured by hypothecation of Machinery, Equitable Mortgage of Factory Land in village nandpur, collateral security of Showroom site at village Dhampur from the Bank in the name of the company. Further the loan has been guaranteed by the personal guarantee of all the Directors of Rs. 150.00 lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 67.47 Lacs.

ii. Building Loan was taken from Vijaya Bank during FY 2015 and carries interest @ 13.20% to p.a. The loan is repayable in 63 equal installment of Rs. 112000/- each along with interest, from the date of loan. The loan is secured by hypothecation of Machinery, Equitable Mortgage of Factory Land in village nandpur, collateral security of Showroom site at village Dhampur from the Bank in the name of the company. Further the loan has been guaranteed by the personal guarantee of all the Directors of Rs. 50.00 lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 22.61 Lacs.

iii. ICICI Bank Car Loan was taken during FY 2015 and carries interest @ 14.00% to p.a. The loan is repayable in 36 installment of Rs. 95698/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle of the company. Further the loan has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra director of the Company of Rs. 28.00 Lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 1.88Lacs.

iv. ICICI Bank Car Loan was taken during FY 2015 and carries interest @ 14.00% to p.a. The loan is repayable in 36 installment of Rs. 59811/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle of the company. Further the loan has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra director of the Company of Rs. 17.50 Lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 1.17 Lacs.

v. ICICI Bank Car Loan was taken during FY 2015 and carries interest @ 14.00% to p.a. The loan is repayable in 36 installment of Rs. 59811/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle of the company. Further the loan has been guaranteed by the personal guarantee of Mr. Vijay Kumar Batra director of the Company of Rs. 17.50 Lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 1.17 Lacs.

vi. Car loan was taken from Vijaya Bank during FY 2016 and carries interest @ 10.05% to p.a. The loan is repayable in 84 equal installment of Rs. 24950/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle from the Bank in the name of the company. Further the loan has been guranteed by the personal gurantee of Mr. Vijay Kumar Batra (Director) of Rs. 15.00 lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 12.45 Lacs.

vii. Car loan was taken from Vijaya Bank during FY 2015 and carries interest @ 10.05% to p.a. The loan is repayable in 36 equal installment of Rs. 30200/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle from the Bank in the name of the company. Further the loan has been guranteed by the personal gurantee of Mr. Vijay Kumar Batra (Director) of Rs. 9.35 lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 2.10 Lacs.

viii. Machinery Loan was taken from Vijaya Bank during FY 2017 and carries interest @ 13.00% to p.a. The loan is repayable in 60 equal installment of Rs. 115440/- each along with interest, from the date of loan. The loan is secured by hypothecation of Machinery, Equitable Mortgage of Factory Land in village nandpur, colletral security of Showroom site at village Dhampur from the Bank in the name of the company. Further the loan has been guranteed by the personal gurantee of all the Directors of Rs. 50.00 lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 38.97 Lacs.

ix. Axis Bank Car Loan was taken during November FY 2017 and carries interest @ 8.38% to p.a. The loan is repayable in 36 equal installment of Rs. 218226/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle from the Bank in the name of the company. Further the loan has been guranteed by the personal gurantee of Mr. Vijay Kumar Batra (Director) of Rs. 69.25 Lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 62.30 Lacs

x. HDFC Bank Loan was taken during FY 2017 and carries interest @ 8.76% to p.a. The loan is repayable in 36 equal installment of Rs. 136260/- each along with interest, from the date of loan. The loan is secured by hypothecation of Vehicle from the Bank in the name of the company. Further the loan has been guranteed by the personal gurantee of Mr. Vijay Kumar Batra (Director) of Rs. 43.00 Lacs. Total Outstanding amount at the year ended 31.03.2018 is Rs. 33.28 Lacs

xi. SIDBI ( Machinery new Canada) Loan was taken during FY 2017 and carries interest @ 11.65% to p.a.The loan is repayable in 80 equal installment of Rs. 123000/- each and 81st Installment is of Rs.25000/- along with interest, from the date of loan. The loan is secured by hypothecation of Machinery and Fixed Deposit of Rs.34 Lacs with SIDBI as collateral. Further the loan has been guranteed by the personal gurantee of all the Directors of Rs. 100.00Lacs.Total Outstanding amount at the year ended 31.03.2018 is Rs. 98.65 Lacs

General Notes :

1. No depreciation if remaining useful life is negative or zero.

2. If asset is used less than 365 days during current financial year then depreciation is equals to w.d.v as on 31 -03-2017 less residual value.

3. Depreciation is calculated on pro-rata basis in case asset is purchased/sold during current F.Y.

4. If above assets is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.

1. Contingent Liabilities & Commitments:

a) Estimated amount of contracts remaining to be executed and not provided for in the books of account - Nil (previous year - Nil).

b) Contingent Liabilities:

- Claims against the Company not acknowledged as debt - Nil (previous year - Nil).

- Liabilities in respect of Income Tax, Service Tax, Sales Tax and other material statutory dues have been accounted for on the basis of respective returns filed with the relevant authorities. Additional demand, if any, arising at the time of assessments will be accounted for in the year in which assessments are completed.

2. Issued, Subscribed & Paid up Capital:

The Company raised an amount of Rs. 1951.60 Lakhs by way of initial public offer in the financial year 2017-18. During the year under review, Company completed its Initial Public Offering (IPO) of 22,96,000 equity shares of '' 10/- each, through the Fixed Price Issue for cash at a price of Rs. 85/- per equity share, including a share premium of Rs. 75/- per equity share (the "issue price"), aggregating Rs. 1951.60 lakhs ("the issue"), of which up-to 1,29,600 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 85/- per equity share, aggregating Rs.110.16 lakhs was reserved for subscription by the market maker to the issue (the "market maker reservation portion"). The issue less market maker reservation portion i.e. issue up-to 21,66,400 equity shares of face value of Rs. 10 each for cash at a price of Rs. 85/- per equity share, aggregating Rs. 1841.44 lakhs hereinafter referred to as the "net issue". The issue and the net issue constituted 26.54% and 25.05% respectively of the fully diluted post issue paid up equity share capital of the company. The equity shares were listed in the National Stock Exchange of India Limited at SME Platform. The shares were allotted to the successful allotees on October 10, 2017 and trading in shares commenced on October 12, 2017 at The National Stock Exchange of India.

3. Reserves & Surplus:

- The amount shown in the Reserve & Surplus represents only surplus carried forward from the earlier years plus the surplus earned during the year. Total amount of surplus outstanding as on 31.03.2018 is Rs. 24,23,24,139.79 which includes Share Premium of Rs. 16,16,12,604.98 and Free Reserves of Rs. 8,07,11,534.81

4. In the opinion of the Directors, "Current Assets" and "Loans & Advances" are approximately of the value stated in the Balance Sheet, if realized in the ordinary course of business and to the best of their knowledge provisions for all the known liabilities have been made and, as certified, all the contractual and statutory obligations have been duly complied with.

5. Party balances have been incorporated in the financial statements at the value as per the books of account & are considered hopeful of recovery/good for payment. The balance confirmation letter for both debtor and creditors are sent by the company through registered post, and in few cases balance confirmation is received from them.

There are two three cases where balance is difference from company ledger and debtor/creditor. The same is due to issue of debit note or discounts. The company is getting debtor / creditor reconciliation done as and when ledgers are received from them.

For these class of assets, based on internal assessment and independent technical evaluation carried out by external valuers the management believes that the useful lives as given above best represent the period over which management expects to use these assets. Hence the useful lives for these assets is different from the useful lives as prescribed under Part-C of Schedule-II of the Companies Act, 2013. (Refer note 3.4).

6. Non-Current Investments:

- Equity shares have been stated at cost; provision for appreciation/diminution in the value of shares has not been made and no dividend was received during the year.

The provisions of Section 186 of the Companies Act, 2013 have been complied with.

7. Taxes

- The exact liability of CST/VAT, Service Tax, GST, Income Tax and other statutory dues is indeterminate pending finalisation of assessments and no disputed dues or amounts were outstanding or remaining unpaid as at 31^stMarch, 2018.

- MAT Credit Entitlement (Rs. 1,32,79,434.00 i.e. balance brought forward, additions during the year – Rs. 13937190/ during the year) has been shown under the head ''Reserves & Surplus'' with corresponding effect under the head ''Long-term Loans & Advances'' in accordance with the accepted accounting principles; the amount of tax credit determined shall be carried forward upto ten assessment years immediately succeeding the assessment year in which tax credit becomes allowable.

8. Segment Reporting (AS-17)

Since the Company primarily operates in one segment (i.e. Manufacturing of Oncology medicines), therefore segment reporting as required under Accounting Standard - 17 is not applicable - there is no reportable geographical segment as the export sale of the company is less than 10% of the total sales made in India.

9. Impairment of Assets (AS-28)

During the year, the Company has undertaken a review of all the fixed assets in line with the requirements of AS-28 on "Impairment of Assets" as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, based on such review, no provision for impairment is required to be recognised for the year.

10. Fixed Assets:

- During the financial year 2017-18 the company has made an addition of Rs. 1,34,74,652.00 as Capital Work-in Progress.

- During the financial Year 2017-18 there was an addition of Rs. 7,49,020.00 under the head Land.

- During the financial Year 2017-18 there was an addition of Rs. 1,32,46,779.810 under the head Building.

During the financial year, there was addition of Rs. 55,312,729.25 made to Plant & Machinery, Furniture & Fixtures, Office Equipments, Vehicles & Computers.

11. Deferred Tax Assets & Liabilities (AS-22)

During the FY 2017-18 the Company has made Deferred Tax provisions of Rs. 720255.20, the amount arrived on Rs. 23,30,923 @ 30.90% ( The difference of Depreciation as per IT Act and As per Companies Act.

12. Micro, Small & Medium Enterprises

Based on the information presently available, total outstanding as on 31.03.2018 is Rs.2,68,27,226.00 to micro or small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006.

13. Figures for previous year have been regrouped/rearranged where necessary to conform to the current year''s presentation.