1 Company Overview and Significant Accounting Policies
1. 1 Company Overview
Welcure Drugs & Pharmaceuticals Ltd. ("the Company") is a public limited Company domiciled in India and
incorporated under the provisions of the Companies Act applicable in India. The registered office of the Company is
located at Delhi, India.
The financial statements for the year ended March 31, 2024 were authorized for issue in accordance witha resolution of
the Board of Directors .
1.2 Basis of accounting and preparation of Financial Statements
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS)
specified under Section 133 of the Companies Act, 2013 ("Act") read with the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time).
The financial statements have been prepared on accrual basis on historical cost convention, except as stated otherwise.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted
or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The financial statements including notes thereon are presented in Indian rupees, which is the functional currency of the
company. All the financial information presented in Indian rupees has been rounded to the nearest lakhs as per the
requirement of Schedule III to the Act, unless stated otherwise.
1.3 Use of judgment, estimates and assumptions
The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
1.4 Classification of Assets and Liabilities into Current/Non-current
Based on the nature of products and the time between acquisition of assets and their realisation in cash and cash
equivalent, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current
classifications of assets and liabilities.
1.5 Financial Instruments
1.5.1 Initial recognition
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions
of the instrument.
All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which
are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of
financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on
initial recognition.
1.5.2 Subsequent measurement
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to
hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and intereston the principal amount outstanding.
(ii) Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method.
1.5.3. Derecognition of financial instruments
The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire
or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a
part of a financial liability) is derecognized from the Company's Balance Sheet when the obligation specified in the
contract is discharged or cancelled or expires.
1.6 Fair Value of Financial Instruments
In determining the fair value of its financial instruments, the Company uses assumptions that are based on market
conditions and risks existing at each reporting date.
1.7 Impairment of Financial Assets
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are
not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is
measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an
amount equal to the 12-month ECL, unless there hasbeen a significant increase in credit risk from initial recognition in
which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an
impairment gain or loss in profit or loss.
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