Evoq Remedies Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1 BACKGROUND :

EVOQ REMEDIES LIMITED (CIN: L24230GJ2010PLC059692) (''the Company'') is dealing in Pharmaceutical Business i.e., trading of pharma products and commission agent in pharma products etc.

Registered Office of the Company is situated at: A-1106, Empire Business Hub Near AUDA Water Tank, Science City Road, Sola Ahmedabad 380060.

2 MATERIAL ACCOUNTING POLICIES :

a. Basis of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

These financial statements were authorised and approved for issue by the Board of Directors on 10th April 2025.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

d. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Property plant and eauipments and depreciation

Property plant and equipments are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss. Assets are stated at cost. Depreciation on assets is provided on Straight line method (SLM) in accordance with section 205(2) of the Companies Act, 2013 and at the rates and manner, specified in Schedule II to the Companies Act, 2013 till the residual value of the asset is reduced equal to 5% of the original cost. In respect of assets acquired during the year the depreciation is provided on pro-rata basis.

^f. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and only when the service becomes chargeable and can be reliably measured. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade allowances, rebates and discounts, value added taxes, goods and service tax and applicable taxes, which are collected on behalf of the government or on behalf of third parties.

g. Other Income

Other Income during the year include interest income corresponding to the deposits with the schedule banks, dividend income from mutual funds and other miscellaneous receipts accounted on accrual basis, unless otherwise stated.

h. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non Current Investments. Current Investments are carried at lower of cost and fair value. Non Current Investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary if any, in the value of Non Current Investments.

i. Retirement Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

The contributions remitted to government administered Provident and Pension Fund on behalf of its employees in accordance with the relevant statute are charged to the Statement of Profit and Loss as and when due. The Company has no further obligations for future Provident/ Pension fund benefits other than its monthly contributions.

j. Foreign currency transaction

(i) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

(ii) Conversion

Monetary items denominated in foreign currency at the year end are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference at the year end and the rate on the date of the contract is recognized exchange difference.

(iii) Exchange Differences

Any income or expense on account of exchange difference either on settlement or on transaction is recognized in the Profit & Loss account.

k. Earnings per share

The basic earnings per share is computed by dividing the net loss / profit attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share, and also the weighted average number of equity shares, which could have been issued on the conversion of all dilutive potential shares. In computing dilutive earnings per shares, only potential equity shares that are dilutive and that increase loss per share are included.

l. Taxes on Income

(i) Income tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income tax law) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). Provision for Income Tax is recognised on an annual basis under the taxes payable method, based on the estimated tax liability computed after taking credit for allowances and exemption in accordance with Indian Income Tax Act, 1961.

(ii) The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date for appropriateness of their carrying value at each balance sheet date.

m. Provisions & Contingencies

The Company creates a provision where there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the possible or a present obligation that may, but probably will not require an outflow or inflow of resources. As such there is no possible obligation or a present amount of obligation.A disclosure for a contingencies are made when there is an obligation in respect of which the likelihood of outflow or inflow of resources is remote, no provision is made.

n. Financial Derivatives and Hedging Transactions

Financial Derivatives and Hedging contracts are accounted on the date of their settlement and realized gain/loss in respect of settled contracts is recognized along with the underlying transactions.

^m. Inventories

Inventories are valued at the lower of cost and net realizable value.

Cost is determined on the following basis:

Raw materials and stores & spares: Valued at cost on a weighted average basis. Cost includes all expenses incurred in bringing the inventories to their present location and condition. Work-in-progress and finished goods: Valued at cost (including appropriate production overheads) or net realizable value, whichever is lower.

Traded goods: Valued at cost or net realizable value, whichever is lower.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Obsolete and slow-moving inventories are adequately provided for, wherever necessary.

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Mar 31, 2024

CORPORATE INFORMATION:

EVOQ REMEDIES LIMITED (CIN: L24230GJ2010PLC059692) (‘the Company’) is dealing in Pharmaceutical Business i.e., trading of pharma products and commission agent in pharma products etc.

Registered Office of the Company is situated at: A-1106, Empire Business Hub Near AUDA Water Tank, Science City Road, Sola Ahmedabad 380060.

SIGNIFICANT ACCOUNTING POLICIES

1. BASIS OF ACCOUNTING:

a. The financial statements have been not prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on accrual basis, the provisions of the companies Act, 2013 ("the Act’) (to the extent notified) and guidelines issued by the securities and Exchange Board of India (SEBI), The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the companies Indian Accounting Standards) Rule 2015 and relevant amendment rules issued thereafter.

b. Effective April 1, 2017, the Company has not adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards, with April 1, 2016 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts0 Rules, 2014 (IGAAP), which was the previous GAAP.

All assets and liabilities are classified as current or non-current as per the company’s normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current - non-current classification of assets and liabilities.

2. Use of Estimates

The preparation of financial statements in accordance with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities as at the Balance Sheet date and the results of operations during the reporting period. The actual results could differ from these estimates. Any revision to such accounting estimates is recognized in the accounting period in which such revision takes place.

3. Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, less accumulated depreciation and impairment loss.

Fixed assets are stated at cost. Depreciation on assets is provided on Straight line method (SLM) in accordance with section 205(2) of the Companies Act, 2013 and at the rates and manner, specified in Schedule II to the Companies Act, 2013 till the residual value of the asset is reduced equal to 5% of the original cost. In respect of assets acquired during the year the depreciation is provided on pro-rata basis.

4. Investments

Long-term Investments made by the Company are stated at cost and provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

5. BORROWING COST AND FINANCE CHARGES:

Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period to get ready for its intended use are capitalized as part of the cost of the asset until such time that the assets are substantially ready for their intended use. Capitalization of borrowing costs is suspended and charged to profit and loss during the extended periods when the active development on the qualifying assets is interrupted. Qualifying fixed asset is an asset that necessarily takes a substantial period to get ready for their intended use or sale. All other borrowing costs are not charged to statement of Profit and Loss over the tenure of the borrowing

6. Inventories

Inventory valued at lower of the cost and net realizable value. Quantity records maintain in Tally software, however no physical verification report and details of substandard / expire date material not ascertain.

7. Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, considering contractually defined terms of payment and excluding taxes or duty except turn over with related party. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principle or agent. The company has concluded that it is acting as a principal is all its revenue arrangements except turn over with related party.

8. Foreign Currency Transactions

Foreign currency transactions, if any, are recorded at the exchange rates prevailing on the date of the transaction. Gains and losses arising out of subsequent fluctuations are accounted for on actual payment or realization. Monetary items denominated in foreign currency as at the Balance Sheet date are converted at the exchange rates prevailing on that date. Exchange differences are recognized in the Statement of Profit and Loss.

9. Employee Retirement Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

The contributions remitted to government administered Provident and Pension Fund on behalf of its employees in accordance with the relevant statute are charged to the

Statement of Profit and Loss as and when due. The Company has no further obligations for future Provident/ Pension fund benefits other than its monthly contributions.

10. Taxation

Taxes on Income are accounted in the same period to which the revenue and expenses relate. Provision for current income tax is made based on estimated taxable income, in accordance with the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax effect of timing difference The timing differences are differences between the taxable income and accounting Income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

11. Earnings per share (‘EPS’)

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year except where the results would be anti dilutive. The number of equity shares is adjusted for any share splits and bonus shares issued effected prior to the approval of the financial statements by the Board of Directors.

12. Cash Flow Statements

Cash-flow statements are prepared in accordance with the "Indirect Method” as explained in the Accounting Standard (AS)3 - Cash Flow Statements

13. Contingencies and provisions

Provisions are recognized when the Company has a present obligation as a result of past events and it is more likely that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. Provisions are not discounted to present value and are determined based on 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.

Contingent Liabilities are not disclosed by way of notes to the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements. As stated by Management, there were following Contingent Liabilities.

• The company has not paid below mentioned Income tax demand displayed on income tax portal/website

a. F.Y. 2020-21 Rs. 28,27,100 plus Interest Rs. 7,63,317 totaling Rs. 35,90,417

b. F.Y. 2021-22 Rs. 53,14,660 plus Interest Rs. 7,44,044 totaling Rs. 60,58,704

c. F.Y. 2022-23 Rs. 50,02,570 plus Interest Rs. 2,50,125 totaling Rs. 52,52,695

The company has made income tax provision of Rs. 65.45 out of above Income tax demand in the books of accounts as provision for income tax.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

A. BASIS OF ACCOUNTING:

a. The financial statements have been not prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on accrual basis, the provisions
of the companies Act, 2013 (“the Act’) (to the extent notified) and guidelines issued by
the securities and Exchange Board of India (SEBI), The Ind AS are prescribed under
Section 133 of the Act read with Rule 3 of the companies Indian Accounting Standards)
Rule 2015 and relevant amendment rules issued thereafter.

b. Effective April 1, 2017, the Company has not adopted all the Ind AS standards and the
adoption was carried out in accordance with Ind AS 101 First time adoption of Indian
Accounting Standards, with April 1, 2016 as the transition date. The transition was
carried out from Indian Accounting Principles generally accepted in India as prescribed
under section 133 of the Act, read with Rule 7 of the Companies (Accounts0 Rules, 2014
(IGAAP), which was the previous GAAP.

B. USE OF ESTIMATES:

The preparation of the Financial Statements is not in conformity with Generally Accepted
Accounting Principles requires the Management to make estimates and assumptions considered
in the reported amounts of assets and liabilities (including contingent liabilities) and the reported
amounts of income and expenditure during the period. The Management believes that the
estimates used in preparation of the Financial Statements are prudent and reasonable. Future
results could differ due to these estimates and the differences between the actual results and the
estimates are recognized in the period in which the results are known/ materialized.

C. DIVIDEND:

The company has not declared any dividends.

D. PROPERTY, PLANT AND EQUIPMENTS:

Property, Plant and Equipments has been recorded at actual cost inclusive of duties, taxes and
other residual expenses related to acquisition, improvement, and installation. The company
depreciates property, plant and equipments over their estimated useful lives using the WDV
method.

For transaction to Ind AS, the Company has elected to continue with the carrying value
of all its property, plant and equipments recognized as of April 1, 2016 (transition date)
measured as per the previous GAAP and use that carrying value as its deemed cost as of
the transition date.

Intangible Assets:

Intangible Assets are stated at cost of acquisition or less accumulated amortization. If any.

E. IMPAIRMENT OF ASSETS:

Assets are reviewed for impairment losses whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognized for the
amount by which the carrying amount of the assets exceeds its recoverable amount, which is the
higher of an asset’s net selling price and value in use.

F. INVESTMENTS:

Long-term investments are carried individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are carried individually, at the
lower of cost and fair value. Cost of investments includes acquisition charges such as brokerage,
fees, and duties.

G. BORROWING COST AND FINANCE CHARGES:

Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily
takes a substantial period to get ready for its intended use are capitalized as part of the cost of the
asset until such time that the assets are substantially ready for their intended use. Capitalization
of borrowing costs is suspended and charged to profit and loss during the extended periods when
the active development on the qualifying assets is interrupted. Qualifying fixed asset is an asset
that necessarily takes a substantial period to get ready for their intended use or sale. All other
borrowing costs are not charged to statement of Profit and Loss over the tenure of the borrowing.

H. INVENTORIES:

Current Year inventory valued at lower of the cost and net realizable value. Quantity
records maintain in Tally software, however no physical verification report and details of
sub-standard / expire date material not ascertain.

I. REVENUE RECOGNITION:

Revenue is recognized to the extent it is probable that the economic benefits will flow to the
company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable,
considering contractually defined terms of payment and excluding taxes or duty except turn over
with related party. The Company assesses its revenue arrangements against specific criteria to
determine if it is acting as principle or agent. The company has concluded that it is acting as a
principal is all its revenue arrangements except turn over with related party.

J. TAXATION:

Taxes on Income are accounted in the same period to which the revenue and expenses relate.
Provision for current income tax is made based on estimated taxable income, in accordance with
the provisions of the Income Tax Act, 1961 and rules framed the under Deferred tax is the tax
effect of timing difference The timing differences are differences between the taxable income and
accounting Income for a period that originate in one period and are capable of reversal in one or
more subsequent periods. However, company has not paid income tax payable as per

provision made in profit loss account Rs. 66.52 lacs for FY 2022-23 and Rs. 36.70 lacs
for FY 2021-22 excluding interest.