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.