Note: - 1 Significant accounting policies:
1.0 Corporate Information
MURAE ORGANISOR LIMITED (Formerly known as EARUM PHARMACEUTICALS LIMITED) is a
Limited Company, incorporated under the provisions of Companies Act, 1956 and having CIN:
L24230GJ2012PLC071299. The Company is mainly engaged in Pharmaceutical Business i.e.
trading of pharma products and commission agent in pharma products etc. The Registered
office of the Company is situated at S.F. Shop - 3/2/B Samruddhi Residency, Raspan Arcade,
Cross Road, Nr. Satyam Complex, Nikol, Ahmedabad - 382 350
1.1 Basis of preparation of financial statements
a. Accounting Convention: -
These financial statements of the Company have been prepared in accordance with Generally
Accepted Accounting Principles in India (“Indian GAAP”]. Indian GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies Act, 2013 (“the Act”]
read with the Rule 7 of the Companies (Accounts] Rules, 2014. The financial statements have
been prepared on an accrual basis and under the Historical Cost Convention and the
Companies (Accounting Standards] Amendment Rules 2016 and the relevant provisions of
the Companies Act, 2013.
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 in the Part I of Schedule Ill 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.
b. Functional and Presentation Currency
The functional and presentation currency of the company is Indian rupees. This financial
statement is presented in Indian rupees. Due to rounding off, the numbers presented
throughout the document may not add up precisely to the totals and percentages may not
precisely reflect the absolute figures.
All amounts disclosed in the financial statements and notes are rounded off to thousands the
nearest INR rupee in compliance with Schedule III of the Act, unless otherwise stated.
c. Compliance with Ind AS
The financial statements have been prepared in accordance with Ind AS notified under the
Companies (Indian Accounting Standards] Rules, 2015.
d. Use of Estimates and Judgments
The preparation of the Ind AS financial statements in conformity with the generally accepted
accounting principles in India requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities as of the Balance Sheet date, reported
amount of revenue and expenses for the year and disclosure of contingent labilities and
contingent assets as of the date of Balance Sheet. The estimates and assumptions used in
these Ind AS financial statements are based on management's evaluation of the relevant facts
and circumstances as of the date of the Ind AS financial statements. The actual amounts may
differ from the estimates used in the preparation of the Ind AS financial statements and the
difference between actual results and the estimates are recognized in the period in which the
results are known/materialize.
Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and in
future periods affected.
Particular, information about significant areas of estimation uncertainty and critical
judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial Statement are as below:
1. Evaluation of recoverability of deferred tax assets/Liabilities;
2. Useful lives of property, plant and equipment and intangible assets;
3. Provisions and Contingencies;
4. Provision for income taxes, including amount expected to be paid/recovered for
uncertain tax positions;
5. Recognition of Deferred Tax Assets/Liabilities
6. Valuation of Financial Instruments;
e. Current and Non - Current Classification
The Company presents assets and liabilities in the Balance Sheet based on current/ non¬
current classification.
An asset / liability is treated as current when it is:-
i. Expected to be realized or intended to be sold or consumed or settled in normal
operating cycle.
ii. Held primarily for the purpose of trading.
iii. Expected to be realized / settled within twelve months after the reporting period,
or.
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
iv. There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.
All other assets and liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
1.2 ACCOUNTING POLICIES:
(A) Property, Plant and Equipment
All items of property, plant and equipment are stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct
overheads for self-constructed assets and other direct costs incurred up to the date the asset
is ready for its intended use.
Subsequent costs are included in the asset's carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of any component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are charged to profit or loss during the reporting
period in which they are incurred.
Depreciation is provided on the Written-Down Value (WDV) over the estimated useful lives of
the assets considering the nature, estimated usage, operating conditions, past history of
replacement, anticipated technological changes, manufacturers' warranties and maintenance
support. The Company provides pro-rata depreciation from the day the asset is put to use and
for any asset sold, till the date of sale.
Projects under commissioning and other Capital work-in-progress are carried at cost
comprising of direct and indirect costs, related incidental expenses and attributable interest.
Depreciation is not recorded on capital work-in-progress until construction and installation
are complete and the asset is ready for its intended use.
An item of property, plant and equipment is derecognized on disposal. Any gain or loss arising
from derecognition of an item of property, plant and equipment is included in profit or loss.
(B) Intangible Assets
Intangible assets are stated at cost of acquisition net of recoverable taxes, accumulated
amortization, and impairment losses, if any. Such costs include purchase price, borrowing cost,
and any cost directly attributable to bringing the asset to its working condition for the
intended use, net charges on foreign exchange contracts and adjustments arising from
exchange rate variations attributable to the intangible assets.
Subsequent costs are included in the asset's carrying amount or recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the entity and cost can be measured reliably.
The amortization period for intangible assets with finite useful lives is reviewed at each year-
end. Changes in expected useful lives are treated as changes in accounting estimates.
Internally generated intangible asset Research costs are charged to the statement of Profit and
Loss in the year in which they are incurred.
The cost of an internally generated intangible asset is the sum of directly attributable
expenditure incurred from the date when the intangible asset first meets the recognition
criteria to the completion of its development.
Product development expenditure is measured at cost less accumulated amortization and
impairment, if any. Amortization is not recorded on product in progress until development is
complete.
Gains or losses arising from derecognition of an Intangible Asset are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are
recognized in the statement of profit and loss when the asset is derecognised.
(C) Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more frequently if events or changes
in circumstances indicate that they might be impaired. Other assets are tested for impairment
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 asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's
fair value less costs of disposal and value in use.
The Company assesses at each balance sheet date whether there is any indication that an asset
may be impaired. If any such indication exists, the Company estimates the recoverable amount
of the asset. If such recoverable amount of the asset or the recoverable amount of the cash¬
generating unit to which the asset belongs is less than its carrying amount, the carrying
amount is reduced to its recoverable amount. The reduction is treated as an impairment loss
and is recognized in the statement of profit and loss. If at the balance sheet date there is an
indication that a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the recoverable amount subject to a
maximum of depreciable historical cost.
(D) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided
to Chief Operating Decision Maker (CODM).
The Company has identified its Managing Director as CODM who is responsible for allocating
resources and assessing performance of the operating segments and makes strategic
decisions.
The Company is operating in single business segments. Hence, reporting requirement of
Segment reporting is not arise.
(E) Statement of Cashflow
Cash Flows of the Group are reported using the indirect method, whereby profit before tax is
adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past
or future operating cash receipts or payments and item of income or expenses associated with
investing or financing Cash Flows. The cash flows from operating, investing and financing
activities of the Company are segregated.
(F) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and highly liquid
investments with an original maturity of up to three month that are readily convertible into
cash and which are subject to an insignificant risk of changes in value.
(G) Foreign Currency Transactions
i) Initial Recognition
On initial recognition, all foreign currency transactions are recorded by applying to the
foreign currency amount the exchange rate between the functional currency and the
foreign currency at the date of the transaction.
ii) Subsequent Recognition
As at the reporting date, 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. All non-monetary items which are carried at fair value or other similar
valuation denominated in a foreign currency are reported using the exchange rates that
existed when the values were determined.
All monetary assets and liabilities in foreign currency are restated at the end of accounting
period. Exchange differences on restatement of all other monetary items are recognised
in the Statement of Profit and Loss.
Any subsequent events occurring after the Balance Sheet date up to the date of the approval of
the financial statement of the Company by the board of directors on 29th May, 2023 have been
considered, disclosed and adjusted, if changes or event are material in nature wherever
applicable, as per the requirement of Ind AS .
(H) Income Taxes
The tax expense for the period comprises of current tax and deferred income tax. Tax is
recognized in Statement of Profit and Loss, except to the extent that it relates to items
recognized in the Other Comprehensive Income or in Equity. In which case, the tax is also
recognized in Other Comprehensive Income or Equity.
I. Current tax: -
Current tax is measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevailing in the respective jurisdictions. 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.
II. Deferred tax:-
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and
liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amount in financial
statements.
Deferred tax asset is recognized to the extent that it is probable that taxable profit will be
available against which such deferred tax assets can be realized. The carrying amount of
deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilized.
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