ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Sheel Biotech Ltd.

Mar 31, 2024

1. Basis of Preparation

The Financial statements has been prepared under historical cost conventions from books of accounts maintained on accrual basis (unless
otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting
Standard issued by the ICAI and referred to Section 129 & 133 of the Companies Act, 2013 of India. The Accounting Policies applied
by the company are consistent with those used in the previous year.

All assets and liabilities have been classified as current or non- current as per the Company''s normal operating cycle and other criteria set
out as Act and guidelines. Based on the nature of products and the time between 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. Revenue Recognition

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to the
buyer as per the terms of the contract, the Company retains no effective control over the goods transferred to a degree usually associated
with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of
goods. Sales are recognized net of trade discounts, rebates and sales taxes.

Other incomes are also being taken on due basis.

3. Expenditure

Expenses are accounted on accrual basis.

4. Provisions and Contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event. It is probable that an outflow of resources
embodying economies benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation.
Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date and are
not discounted to its present value. These are reviewed at each year end date and adjusted to reflect the best current estimate.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a
present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot be made.

5. Retirement/post-retirement benefits
Defined Contribution Plans

Contribution to defined contribution schemes such as employees state insurance, labour welfare fund, superannuation scheme, employee
pension scheme etc. are charged as an expense based on the amount of contribution required to be made as and when service are rendered
by the employees Company''s provident fund contribution, in respect of certain employees , is made to a government administered fund
and charged as an expense to the Statement of Profit and Loss. The above benefits are classified as Defined Contribution Schemes as the
Company has no further defined obligations beyond the monthly contributions.

Defined Benefit Plans

In respect of employees, provident fund contributions are made to a government directly by the company under the Employees Provident
Funds and Miscellaneous Provisions Act 1952.

6. Tangible Assets

Tangible Assets are stated at cost, less accumulated depreciation and impairment, subsequent expenditures related to an item of tangible
asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of
performance.

7. Depreciation and amortization

Depreciation is provided on a pro-rata basis on the written down value method over the estimated useful lives of the assets or at the rates
prescribed under Schedule II to the Companies Act, 2013.

8. Impairment

Assessment for impairment is done at each Balance Sheet date as to whether there is any indication that an asset (tangible and intangible)
may be impaired. For the purpose of assessing impairment, the smallest group of assets that generates cash inflows from continuing use that
are largely independent of the cash inflows from other assets or groups of assets is considered as a cash generating unit. No such
impairment is indicated in the balance sheet and neither such reflection has been arisen.

9. Trade receivables and Loans and advances

Trade receivables and loans and advances are stated at cost and no such doubtful debts has been indicated by the management and neither
any such provision is required to be made this year.

10. Deferred Tax Provisions

Tax expense for the year comprises current tax and deferred tax. Current tax is measured at the amount expected to be paid to (recovered
from) the taxation audiorities using the applicable tax rates and tax laws.

Deferred tax is recognized for all the timing differences subject to the consideration of prudence in respect of deferred tax assets. Deferred
tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet
date. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed
depreciation or carry forward losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence
that they can be realized against future taxable profits. The carrying amount of deferred tax assets is reviewed at each balance sheet date for
any write down or reversal, as considered appropriate.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognized amounts and there is
an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off assets against liabilities representing current tax and where the deferred tax assets and deferred tax liabilities
relate to taxes on income levied by the same governing taxation laws.

11. Investment

Investments are classified into Current or long-term investments. Current investments are stated at the lower of cost or fair market value.
Long term investments are stated at cost. Provision for diminution is made to recognize a decline, other than temporary, in the value of long¬
term investments. Company has made a provision for diminution during the year to recognize a decline, other than temporary, in the value
of long-term investment as per AS- 13 “Accounting for Investment” issued by “The Institute of Chartered Accountants of India”.

12. Cash and Cash Equivalents

Cash and Cash Equivalents comprise cash and cash-on-deposit with banks and financial institutions. The group considers all highly liquid
investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of
cash to be cash equivalents.

13. Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires that the management
makes estimates and assumptions that effect the reported amounts of assets and liabilities, disclosures of contingent liabilities as at the
date of financial statements, and the reporting amounts of revenue and expenses during the reported period. Actual results could differ
from those estimates.

14. Segment Reporting

Accounting Standard - 17 "Segment Reporting" issued by "The Institute of Chartered Accountants of India" is not applicable to this
company as company does not have any reportable segment during the year.

15. 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

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(iii) Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting Company’s monetary items at rates different from those
at which they were initially recorded during the year or reported in previous financial statements, are recognised as income or as
expenses in the year in which they arise.

16. Inventories

Inventories of Finished goods are valued at cost (on FIFO method) or net realizable value whichever is less. Inventories of spares,
consumables and accessories are valued at cost (on FIFO method). Inventories of work in progress or semi-finished goods has been
valued at estimation of cost incurred.