KRISHNA RAO & ASSOCIATES Unit I-2/A, Dhruvatara Apartments

Chartered Accountants Medinova Complex, Somajiguda,

Hyderabad – 500 082.
Phone: +91 9848157570
Email: [email protected]
_______________________________________________________________________________

INDEPENDENT AUDITOR’S REPORT

To the Members of Velarix Lifesciences Private Limited

Report on the Audit of the Financial Statements

Opinion
We have audited the financial statements of Velarix Lifesciences Private Limited (“the
Company”), which comprise the balance sheet as at 31st March 2024, and the statement of Profit
and Loss for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies and other explanatory information. (hereinafter referred to as
‘financial statements’).

In our opinion and to the best of our information and according to the explanations given to us, the
aforesaid financial statements give the information required by the Companies Act, 2013 (‘the
Act”) in the manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024,
its Profit for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further
described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together with the ethical requirements that are relevant
to our audit of the financial statements under the provisions of the Companies Act, 2013 and the
Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion on the financial statements.

Information other than the financial statements and auditor’s report thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The
other information comprises the information included in the Company’s annual report, but does
not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained during the course of our audit or
otherwise appears to be materially misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.

Management’s responsibility for the financial statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the
Companies Act, 2013 (“the Act”) with respect to the preparation of these financial
statements that give a true and fair view of the financial position and financial performance of the
Company in accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with relevant rules issued
there under. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company’s financial reporting
process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:

 Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

 Obtain an understanding of internal financial controls relevant to the audit in order to

design audit procedures that are appropriate in the circumstances. Under section 143(3)(i)
of the Act, we are also responsible for expressing our opinion on whether the Company
has adequate internal financial controls system in place and the operating effectiveness of
such controls.

 Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s
ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a
going concern.
  Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements that, individually or in

aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of
the financial statements may be influenced. We consider quantitative materiality and qualitative
factors in (i) planning the scope of our audit work and in evaluating the results of our work; and
(ii) to evaluate the effect of any identified misstatements in the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.

Report on other legal and regulatory requirements

1. This report does not include a statement on the matters specified in paragraphs 3 and 4 of the
Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of
India in terms of section 143 (11) of the Companies Act, 2013, since in our opinion and
according to the information and explanations given to us, the said Order is not applicable to
the company.

2. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so
far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss and dealt with by this Report are in
agreement with the relevant books of account.

(d) In our opinion, the aforesaid financial statements comply with the Accounting Standards
specified under Section 133 of the Act, relevant rules issued there under.

(e) On the basis of the written representations received from the directors as on 31st March, 2024
taken on record by the Board of Directors, none of the directors is disqualified as on 31st
March, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) As per the Notification No. G.S.R. 583 (E) dated 13th June, 2017 issued by the Ministry of
Corporate Affairs and according to the information and explanations given to us, reporting, on
the adequacy of the internal financial controls over financial reporting of the company and the
operating effectiveness of such controls, is not applicable to the company.

(g) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197(16) of the Act, as amended :

In our opinion and to the best of our information and according to the explanations given to us,
the company has paid remuneration to its directors during the year and is in accordance with the
provisions of section 197 of the Act.
 (h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the
best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial
position;

ii. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the Investor Education
and Protection Fund by the Company.

iv. a) The management has represented that, to the best of its knowledge and belief, other than
as disclosed in the financial statements, no funds have been advanced or loaned or
invested (either from borrowed funds or share premium or any other sources or kind of
funds) by the company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the
company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, other than
as disclosed in the financial statements, no funds have been received by the company
from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the
understanding, whether recorded in writing or otherwise, that the company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
and

c) Based on such audit procedures that were considered reasonable and appropriate in the
circumstances, nothing has come to our notice that has caused us to believe that the
representations under sub-clause (a) and (b) contain any material misstatement; and

v. No dividend has been declared or paid during the year by the Company.

vi. The management has represented that the company has maintained its books of accounts
manually and at the year end the entries were made into the software to print the books of
account, Trial Balance, Balance Sheet and Statement of Profit & Loss from such software.
Accordingly reporting under rule 11(g) of the Companies (Audit and Auditors) Rules,
2014 is not applicable.

M/s. Krishna Rao & Associates

Chartered Accountants
Firm Registration No. 011298S

(B. V. Krishna Rao)

Proprietor
Membership No. 207106
Place : Hyderabad UDIN: 24207106BKEBJW2122
Date : 02-09-2024
 Velarix Lifesciences Private Limited
Flat No.101, AIM Prestige, Tulasi Nagar,
Kukatpally, Hyderabad - 500081

Balance Sheet as at 31st March, 2024

Amount in ₹ 000's
Note As At As At
Particulars No. March 31, 2024 March 31, 2023

I EQUITY AND LIABILITIES:

1 Shareholders funds
(a) Share Capital 2 100.00 100.00
(b) Reserves and Surplus 3 4,070.17 2,557.05

2 Share application money pending allotment -

3 Non-current liabilities
(a) Long-term borrowings 4 470.00 470.00
(b) Deferred tax Liability (net) - -
(c) Other Long term liabilities - -
(d) Long-term provisions - -

4 Current Liabilities
(a) Short-term borrowings - -
(b) Trade payables
-Due to micro and small enterprises - -
-Other creditors 5 1,17,499.50 38,604.25
(c) Other current liabilities 6 568.34 552.45
(d) Short-term provisions 7 62.40 -
TOTAL 1,22,770.41 42,283.75

II ASSETS:
1 Non-current assets
(a) Property, plant and equipment 8 324.00 324.00
(b) Capital work-in-progress - -
(c) Non-current Investments - -
(d) Deferred tax assets (net) - 449.39
(e) Long- Term Loans and advances - -

2 Current assets
(a) Inventories 9 - 34,447.50
(b) Trade Receivables 10 1,19,132.86 -
(c) Cash and bank balances 11 363.58 411.54
(d) Short -term loans and advances 12 35.80 -
(e) Other current assets 13 2,914.17 6,651.32
Significant accounting policies and notes to accounts 1,22,770.41 42,283.75
As per our Report of even date on behalf of the board
for Krishna Rao & Associates for Velarix Lifesciences Private Limited
Chartered Accountants
Firm Registration No.011298S

(B V Krishna Rao) (Narasareddy Peketi) (Manda Sai Santhosh Reddy)

Proprietor Director Director
Membership No. 207106 DIN : 07952473 DIN : 08944345

Place: Hyderabad
Date: 02-09-2024
 Velarix Lifesciences Private Limited
Flat No.101, AIM Prestige, Tulasi Nagar,
Kukatpally, Hyderabad - 500081

Statement of Profit and Loss for the year ended 31st March, 2024
Amount in ₹ 000's
Note Year Ended Year Ended
Particulars No. March 31, 2024 March 31, 2023

I Revenue from operations 14 1,75,301.00 52,393.45

II Other Income 2.09 -

III Total Income 1,75,303.09 52,393.45

IV Expenses:
a) Cost of materials 15 1,37,165.68 86,382.73
b) (Increase)/Decrease in Inventory 16 34,447.50 -34,447.50
c) Operating expenses - -
d) Employee benefit expenses 17 1,500.00 1,500.00
e) Finance costs - -
f) Depreciation and amortisation expense - -
g) Other expenses 18 165.01 743.77

Total Expenses 1,73,278.19 54,179.00

V Profit before tax 2,024.90 -1,785.55

VI Tax Expense:
(a) Current tax 19 62.40 -
(b) Deferred Tax 449.39 -449.39
(c) Income tax adjustments - -

VII Profit / (Loss) for the period 1,513.12 -1,336.16

VIII Earnings per equity share: (Face value of Rs.10/- each)

- Basic & Diluted (Rs.) 151.31 (133.62)
- No. of shares used for EPS calculation (Weighted average) 10000 10000
Significant accounting policies and notes to accounts
As per our Report of even date on behalf of the board
for Krishna Rao & Associates for Velarix Lifesciences Private Limited
Chartered Accountants
Firm Registration No.011298S

(B V Krishna Rao) (Narasareddy Peketi) (Manda Sai Santhosh Reddy)

Proprietor Director Director
Membership No. 207106 DIN : 07952473 DIN : 08944345

Place: Hyderabad
Date: 02-09-2024
Notes to Accounts:

Note No. 1: SIGNIFICANT ACCOUNTING POLICIES:

a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The financial statements have been prepared and presented under the historical cost
convention on the accrual basis of accounting and comply with the Accounting Standards
specified under Section 133 of the Companies Act, 2013 (‘the Act’) read with Rule 7 of
the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted
(GAAP) in India. The financial statements are presented in Indian Rupees (‘000’s’).
b) REVENUE RECOGNITION :
Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the company and the revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is recognised.

Revenue from sale of goods is recognised when all the significant risks and
rewards of ownership of the goods have been passed to the buyers, usually on
delivery of the goods.

c) USE OF ESTIMATES :
The preparation of standalone financial statements in conformity with Generally Accepted
Accounting Principles (GAAP) requires the management to make judgments, estimates
and assumptions that affect the application of accounting policies and reported amounts of
assets, liabilities, income and expenses and the disclosure of contingent liabilities on the
date of the standalone financial statements. Actual results could differ from those
estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any
revision to accounting estimates is recognised prospectively in current and future periods.

d) INVENTORIES :
i) Raw Materials, Stores and Spares are valued at lower of cost and net realizable value.
Cost is determined on weighted average basis.
ii) Work-in-progress, traded goods and finished goods are valued at lower of cost and net
realizable value.
iii) Net realizable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and estimated costs necessary to make the sale.

e) PROPERTY, PLANT AND EQUIPMENT:

Property, plant and equipment are carried at cost of acquisition or construction less
accumulated depreciation and / or accumulated impairment loss, if any. The cost of
property, plant and equipment comprises the purchase price, taxes, duties, freight and any
other directly attributable costs of bringing the assets to their working condition for their
intended use.

f) DEPRECIATION :
Depreciation on property, plant and equipment has been provided based on the useful lives
as prescribed under Part C of the Schedule II of the Companies Act, 2013.

Depreciation on the assets acquired during the year is provided on pro-rata basis.
g) RETIREMENT BENEFITS :

There are no permanent employees, as on 31-03-2024 in the company, hence the

management has not made any provision towards retirement benefits.

h) TAXATION :
Current tax
The current charge for income taxes is calculated in accordance with the relevant tax
regulations applicable to the Company.
Deferred tax
Deferred tax charge or benefit reflects the tax effects of timing differences between
accounting income and taxable income for the year. The deferred tax charge or benefit
and the corresponding deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance sheet date. Deferred tax
assets are recognised only to the extent there is reasonable certainty that the deferred tax
assets can be realised in future against future taxable income; however, where there is
unabsorbed depreciation or carry forward of losses, deferred tax assets are recognised
only if there is a virtual certainty of realisation of such deferred tax assets. Deferred tax
assets are reviewed at each balance sheet date and written-down or written-up to reflect
the amount that is reasonably/virtually certain to be realised.

i) EARNING PER SHARE :

The basic earnings per share (“EPS”) is computed by dividing the net profit after tax for
the year by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit after tax for the year
and the weighted average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares. The dilutive potential equity shares are
deemed to be converted as of the beginning of the year, unless they have been issued at a
later date. The diluted potential equity shares would be adjusted for the proceeds
receivable had the shares been actually issued at par value.

j) FOREIGN CURRENCY TRANSACTIONS :

Income and expenditure items involving foreign exchange are translated at the exchange
rates prevailing on the dates of transactions. All fluctuations arising from foreign
Exchange transactions are dealt with in the profit and loss account. Gains and losses are
accounted for on realization.
k) LEASES :

Assets taken on lease where the Company does not acquire substantially all the risks and
rewards of ownership are classified as operating leases. Lease payments made under
operating leases are recorded as expense as and when the lease payments are accrued.

l) PROVISIONS, CONTINGENT LIABILITIES AND CONTIGNET ASSETS :

A provision is recognised if, as a result of a past event, the Company has a present
obligation that can be estimated reliably, and it is probable that an outflow of economic
benefits will be required to settle the obligation. Provisions are recognised at the best
estimate of the expenditure required to settle the present obligation at the balance sheet
date. The provisions are measured on an undiscounted basis.

A contingent liability exists when there is a possible but not probable obligation, or a
present obligation that may, but probably will not, require an outflow of resources, or a
present obligation whose amount cannot be estimated reliably. Contingent liabilities do
not warrant provisions, but are disclosed unless the possibility of outflow of resources is
remote.

A contract is considered as onerous when the expected economic benefits to be derived

by the Company from the contract are lower than the unavoidable cost of meeting its
obligations under the contract. The provision for an onerous contract is measured at the
lower of the expected cost of terminating the contract and the expected net cost of
continuing with the contract. Before a provision is established, the Company recognises
any impairment loss on the assets associated with that contract.

m) IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT:

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 recognised in the Statement of Profit
and Loss. If at the balance sheet date there is an indication that if 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 depreciated historical cost.
Velarix Lifesciences Private Limite d
Notes to accounts

NOTE NO: 2 - SHARE CAPITAL:

Particulars As At March 31, 2024 As At March 31, 2023

Number ₹ in 000's Number ₹ in 000's

Authorised

Equity Shares of Rs. 10/- each 10,000 100.00 10,000 100.00

Issued, Subscribed and Paid up

Equity Shares of Rs. 10/- each fully paid up 10,000 100.00 10,000 100.00

(Refer footnote (a), (b) & (c) below)

Total 10,000 100.00 10,000 100.00

Footnote:

(a) Reconciliation of the number of shares outstanding as at March 31, 2024 and 2023 :

Particulars As At March 31, 2024 As At March 31, 2023

Number ₹ in 000's Number ₹ in 000's
Equity Shares outstanding at the beginning of the year 10,000 100.00 10,000 100.00
Equity Shares Issued during the year - - - -
Equity Shares bought back during the year - - - -
Equity Shares outstanding at the end of the year 10,000 100.00 10,000 100.00

(b) Details of Shareholders holding more than 5% shares:

Particulars As At March 31, 2024 As At March 31, 2023

No. of Shares % of Holding No. of Shares % of Holding
held held

1 P Narasa Reddy 3,333 33.33% 3,333 33.33%

2 V Jyothi 6,667 66.67% 6,667 66.67%

(c) Shares held by the promoters:

As at March, 2024
Particulars % of
No. of shares at No. of shares at
Change during change
the beginning of the end of the % of total shares
the period during
the year ye ar
the year
1) P. Narasa Reddy 3,333.00 - 3,333.00 33.33% -
2) V Jyothi 6,667.00 - 6,667.00 66.67% -

As at March, 2023
Particulars % of
No. of shares at
No. of share s at Change during change
the end of the % of total shares
incorporation the period during
ye ar
the year
1) P. Narasa Reddy 3,333.00 - 3,333.00 33.33% -
2) V Jyothi 6,667.00 - 6,667.00 66.67% -

(d) Rights, preferences and restrictions attached to equity shares:

The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity share is entitled to one vote per share. All equity
shares rank equally with regard to dividends and share in the Company's residual assets. Distribution of dividends and repayment of capital, if any, shall be
subject to the provisions of applicable laws and the terms and conditions of the loan agreements executed by the Company with the lenders.
Velarix Life scie nce s Private Limite d
Note s to accounts

NOTE NO: 3 - RESERVES AND SURPLUS:

Particulars As At As At
March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

ii) Surplus
Opening balance 2,557.05 3,893.21
(+) Net Profit for the current year 1,513.12 -1,336.16
Closing balance 4,070.17 2,557.05

4,070.17 2,557.05

NOTE NO:4 - LONG-TERM BORROWINGS:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Loans from directors 470.00 470.00

470.00 470.00

NOTE NO: 5 - TRADE PAYABLES:

As At As At
PARTICULARS
March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

-Dues to micro, small and medium enterprises - -

-other creditors 1,17,499.50 38,604.25
1,17,499.50 38,604.25

Te rms and conditions of trade payable s :

- Trade payables are non interest bearing
Aging of trade payable s :
- There are no disputed trade payables as at and for the year ended March 31, 2024 and March, 2023.
- Below is the list of undisputed trade payables outstanding for following periods from the due date.
As at March 31, 2024 MSME Othe rs
- Less than one year - 1,17,499.50
- 1 to 2 Years - -
- 2 to 3 Years - -
- More than 3 years - -
Total - 1,17,499.50

As at March 31, 2023 MSME Othe rs

- Less than one year - 38,604.25
- 1 to 2 Years - -
- 2 to 3 Years - -
- More than 3 years - -
Total - 38,604.25

NOTE NO:6 - OTHER CURRENT LIABILITIES:

As At As At
PARTICULARS
March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Expenses and other payable 479.80 425.00

Statutory dues payable 88.54 127.45
568.34 552.45

NOTE NO: 7 - SHORT-TERM PROVISIONS:

As At As At
PARTICULARS
March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Provision for income tax 62.40 -

62.40 -
Velarix Lifesciences Private Limited
Notes to accounts

NOTE NO : 8 : PROPERTY, PLANT AND EQUIPMENT: in ₹ 000's

GROSS BLOCK DEPRECIATION BLOCK NET BLOCK
AS AT Additions Deletions AS AT UPTO FOR THE UPTO AS AT AS AT
S.NO. PARTICULARS
01.04.2023 During the 31.03.2024 01.04.2023 YEAR 31.03.2024 31.03.2024 31.03.2023
Year

TANGIBLE ASSETS :

1 Agricultural Land 324.00 - - 324.00 - - - 324.00 324.00

TOTAL 324.00 - - 324.00 - - - 324.00 324.00

PREVIOUS YEAR - - - - - - - - -
Ve larix Life scie nce s Private Limite d
Note s to accounts

NOTE NO: 9 - INVENTORIES:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Closing Stock - 34,447.50

- 34,447.50

NOTE NO: 10 - TRADE RECEIVABLES:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

(Unsecured and considered good)

(a) from related parties - -
(b) Other debts 1,19,132.86 -
1,19,132.86 -

Trade re ce ivable s outstanding age ing sche due as at March 31, 2024 and March 31, 2023
Undis puted, Conside re d good
Outstanding for following periods from the due date of payament 31-03-2024 31-03-2023
Lessthan 6 months 1,01,934.92 -
6 months to 1 year 17,197.95 -
1 to 2 years - -
2 to 3 years - -
Morethan 3 years - -
Total 1,19,132.86 -

Notes: 1) There are no disputed trade receivables and unbilled receivables as on any of the dates given above.
2) Trade receivables are non-interest bearing.

NOTE NO:11 - CASH AND CASH EQUIVALENTS:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

(a) Cash and cash equivalents:

(i) balances with banks;
(1) in deposit accounts - -
(2) in current accounts 229.48 263.33
(ii)Cash on hand 134.10 148.21
363.58 411.54

NOTE NO: 12 - SHORT TERM LOANS AND ADVANCES:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's
(Unsecured and considered good)

(a) Other advances 35.80 -

(b) Deposits - -
35.80 -

NOTE NO: 13 - OTHER CURRENT ASSETS:

As At As At
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

(a) Balance with revenue authorities 2,914.17 6,651.32

2,914.17 6,651.32
Ve larix Lifescience s Private Limite d
Notes to accounts

NOTE NO: 14 - REVENUE FROM OPERATIONS:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's
Sale of products
- Finished goods 1,75,301.00 52,393.45
1,75,301.00 52,393.45

NOTE NO: 15 - COST OF MATERIALS:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Purchase of materials 1,37,165.68 86,382.73

1,37,165.68 86,382.73

NOTE NO: 16 - CHANGES IN INVENTORIES:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's

Opening Stock 34,447.50 -

Less: Closing Stock - 34,447.50
34,447.50 -34,447.50

NOTE NO: 17 - EMPLOYEE BENEFIT EXPENSE:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's
Salaries,wages and other benefits 1,200.00 1,200.00
Managerial remuneration 300.00 300.00
1,500.00 1,500.00

NOTE NO: 18 - OTHER EXPENSES:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's
Bank charges 0.79 1.15
Consultancy charges - 15.00
Conveyance expenses 45.50 -
Business promotion expenses - 616.98
Audit fee 100.00 60.00
Interest on GST & TDS late filing 8.57 -
Transportation charges 4.20 43.18
Telephone and communication expenses 5.95 5.88
Other Expenses - 1.59
165.01 743.77

NOTE NO: 19 - CURRENT TAX:

Ye ar Ended Year Ended
PARTICULARS March 31, 2024 March 31, 2023
₹ in 000's ₹ in 000's
Current tax 62.40 -
Less: MAT credit entitlement - -
Net Current tax 62.40 -
Note No. 20 Ratios:
As at March, 31 Variance
Particulars Numerator Denominator 2024 2023 (in %)
Current ratio Current Assets Current Liabilities 1.04 1.06 -2.22%
Debt-equity ratio Total debt Shareholder's equity 0.11 0.18 -36.28%
Debt service coverage ratio Earnings availabe for debt serivce Debt Service NA NA NA
Return on equity (ROE) Net profit after taxes Average Shareholders equity 44.33% -40.18% -210.31%
Invetory turnover ratio Cost of goods sold Average inventory 9.96 3.02 230.44%
Trade receivables turnover ratio Net credit sales Average trade receivables 2.94 6,930.35 -99.96%
Trade payables turnover ratio Net credit purchases Average trade payables 1.76 4.47 -60.67%
Net capital turnover ratio Net Sales Working capital 40.61 22.26 82.45%
Net profit ratio Net profit after taxes Revenue from operations 0.86% -2.55% -133.85%
Return on capital employed ratio Earning before tax and interest Capital employed 43.64% -57.10% -176.42%
Retun on investment ratio Income generated from invested funds Average invested funds in treasury investments NA NA NA

Note: During the FY 2023-24, the sales were increased by 234.59% and the net profit for the said year was Rs. 20.25 lakhs as against loss of Rs. 17.85 lakhs.
Accordingly most of the above ratios were increased or decreased by more than 25%.
Note No.21 : Figures have been rounded off to the nearest rupee.

Note No.22 : Previous year figures have been regrouped, reclassified and recast wherever necessary to
confirm to current years classification.

Note No.23 : There are no dues to Micro, Small or Medium size enterprises as on 31 March 2024.

Note No.24 : The company is a Small and Medium Sized Company (SMC) as defined in the
General Instructions in respect of Accounting Standards notified under the
Companies Act, 2013. Accordingly, the company has complied with the
Accounting Standards as applicable to a Small and Medium Sized Company.

Note No.25 : Auditors' Remuneration :

Particulars 2023 – 24 2022-23
Rs. in 000’s Rs. in 000’s

Audit fee 100.00 60.00

======== ========

Note No. 26 : Related Party Transactions as per Accounting Standard-18 are as below:

1. Related Parties:
Nature of Relationship Name of the Related Party

Directors and Shareholders P Narasa Reddy

V Jyothi
M. Sai Santhosh Reddy

2. Transactions with related parties: Rs.in 000’s

Name of the Related Party Nature of Transaction 2023 – 24 2022-23

Manda Sai Santhosh Director Remuneration 300.00 300.00

Reddy

3. Year End balances:

Name of the Related Party Nature of Transaction 2023 – 24 2022-23

P Narasa Reddy Unsecured Loans 245.00 245.00

V Jyothi Unsecured Loans 125.00 125.00

Manda Sai Santhosh Unsecured Loans 100.00 100.00

Reddy

Manda Sai Santhosh Remuneration Payable 325.00 350.00

Reddy
Note No. 27 : Segment Reporting:

The company is mainly operating in manufacture of pharmaceuticals only. There are

therefore, no separate segments within the company as defined by Accounting Standard 17
(Segmental Reporting). Accordingly, the information given by the company pertains to
manufacture of pharmaceuticals only.

Note No. 28. Other Statutory Information:

a) The Company do not have any benami property, where any proceeding has been
initiated or pending against the Company for holding any benami property.
b) Transactions with struck off companies: Nil
c) The Company do not have any charges or satisfaction which is yet to be registered
with ROC beyond the statutory period.
d) The Company have not traded or invested in Crypto currency or Virtual Currency
during the financial year.
e) The Company have not advanced or loaned or invested funds to any other persons
or entities, including foreign entities (Intermediaries) with the understanding that the
Intermediary shall: directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or the Company have not received any fund from any persons or
entities, including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall: (i) directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
f) The Company does not have any such transaction which is not recorded in the
books of accounts that has been surrendered or disclosed as income during the year
in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).
g) The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.

As per our Report of even date on behalf of the board

For M/s. Krishna Rao & Associates for Velarix Lifesciences Private Limited
Chartered Accountants
Firm Registration No. 011298S

(B. V. Krishna Rao) (Narasareddy Peketi) (Manda Sai Santhosh Reddy)

Proprietor Director Director
Membership No. 207106 DIN : 07952473 DIN : 08944345

Place: Hyderabad
Date : 02-09-2024