2.13 Provisions

Provisions are recognized when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
recognized as a separate asset, but only when the
reimbursement is virtually certain. The expense relating
to a provision is presented in the Statement of Profit
and Loss net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as a
finance cost.

2.14 Retirement and other employee benefits
Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the period
in which the employees render the related service are
recognized in respect of employees’ services up to
the end of the reporting period and are measured at
the amounts expected to be paid when the liabilities
are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not
expected to be settled wholly within 12 months after
the end of the period in which the employees render
the related service. They are therefore measured as
the present value of expected future payments to be
made in respect of services provided by employees up
to the end of the reporting period using the projected
unit credit method. The benefits are discounted using
the market yields at the end of the reporting period that
have terms approximating to the terms of the related
obligation.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have an
unconditional right to defer settlement for at least
twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

Post-employment obligations

The company operates the following post-employment
scheme:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.
Bonus plans

The company recognizes liability and an expense for
bonuses. The company recognizes a provision where
contractually obliged or where there is a past practice
that has created a constructive obligation.

2.15 Investments in subsidiaries

Medicamen has forayed into the domestic market 1st
times through its newly formed subsidiary namely
Medicamen Life Sciences Private Limited with a vision
to have presence in every region of the country in next
two years to become most admired Pharma Company
in segment of Cardio-Vascular, Diabetics and other
related therapy.

In respect of equity investments, the entity prepares
separate financial statements and account for its
investments in subsidiary at cost, net of impairment if
any.

2.16 Cash and Cash Equivalents

Cash and Cash equivalents in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of the
Group’s cash management.

2.17 Trade Receivables

Trade receivables are recognized initially at fair value
and subsequently measured at amortized cost using
the effective interest method, less provision for
impairment.

2.18 Trade and Other Payables

These amounts represent liabilities for goods and
services provided to the company prior to the end of
the financial year which are unpaid. The amounts
are unsecured and are usually paid within 30 days of
recognition. Trade and other payables are presented as

current liabilities unless payment is not due within 12
months after the reporting period. They are recognized
initially at their fair value and subsequently measured
at amortized cost using the effective interest method.

2.19 Contributed Equity

Equity shares are classified as equity.

2.20 Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the company

• by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares.

2.21 Contingent Liabilities

In the opinion of the Board of Directors, adequate
provisions have been made in the accounts for all
known liabilities. The value of current assets, loans and
advances have a value on realization in the ordinary
course of business at least equal to the amount at
which they are stated in the balance sheet, unless
otherwise stated.

The company does have any pending litigation which
would impact on its financial position.

2.22 New standards and interpretations not yet adopted

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. On March 23, 2022,
MCA amended the Companies (Indian Accounting
Standards) Amendment Rules, 2022, applicable from
April 01,2022, as below:

Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition
as part of applying the acquisition method, the
identifiable assets acquired, and liabilities assumed
must meet the definitions of assets and liabilities in the
Conceptual Framework for Financial Reporting under
Indian Accounting Standards (Conceptual Framework)
issued by the Institute of Chartered Accountants of
India at the acquisition date. These changes do not
significantly change the requirements of Ind AS 103.
The Company does not expect the amendment to have
any significant impact in its financial statements.

Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from
deducting from the cost of property, plant and
equipment amounts received from selling items
produced while the company is preparing the asset for
its intended use. Instead, an entity will recognize such
sales proceeds and related cost in profit or loss. The
Company does not expect the amendments to have
any impact in its recognition of its property, plant and
equipment in its financial statements.

Ind AS 37 - Onerous Contracts - Costs of Fulfilling a
Contract

The amendments specify that the "cost of fulfilling" a
contract comprises the "costs that relate directly to the
contract". Costs that relate directly to a contract can
either be incremental costs of fulfilling that contract
(examples would be direct labor, materials) or an
allocation of other costs that relate directly to fulfilling

contracts. The amendment is essentially a clarification
and the Company does not expect the amendment to
have any significant impact in its financial statements.

Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes
when it applies the "10 percent" test of Ind AS 109 in
assessing whether to derecognize a financial liability.
The Company does not expect the amendment to have
any significant impact in its financial statements.

Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the
reimbursement of leasehold improvements by the
lessor in order to resolve any potential confusion
regarding the treatment of lease incentives that might
arise because of how lease incentives were described
in that illustration. The Company does not expect
the amendment to have any significant impact in its
financial statements.

As per our report of even date attached

For Rai Qimat & Associates For and on behalf of the Board

Chartered Accountants Medicamen Biotech Limited

Firm Regn. No. 013152C

CA Qimat Rai Garg Parul Choudhary Chandan Kumar Ashwani Kumar Sharma Rahul Bishnoi

Partner Company Secretary Chief Financial Officer Director Chairman

M.No.: 080857 (ACS : 44157) (PAN: AKBPK1234B) (DIN: 00325634) (DIN: 00317960)

UDIN: 25080857BMLCPJ8565

Place: Gurugram
Date: May 30, 2025