Provisions and Contingent Liabilities

A Provision is recognised when the entity has a present obligation as a result of past event and it is probable that an outflow of
resources will be required and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the
best estimate of the expenditure required to settle the present obligation at the Balance Sheet date.
Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will

be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the entity or a present obligation that arises from past events where it is either not probable that an outflow of resources will
be required to settle the obligation or a reliable estimate of the amount cannot be made. A Contingent asset is neither recognised
nor disclosed.

Revenue Recognition

• Sales are recognized when goods are supplied. Sales are net of trade discounts and rebates. It does not include interdivisional
sales.

• Revenue in respect of other items is recognized when no significant uncertainty as to its determination or realization exists.

• Other Income: Dividend income on investments is recognized when the right to receive dividend is established.

Employee Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account of the
year in which the related service is rendered. Post-employment and other long term employee benefit are recognized as an
expense in the Profit and Loss account for the year in which the liabilities are crystallized.

Retirement Benefits : The Company has not entered in any formal plan or agreement with Individual employee, group of
employees or their representatives for retirement benefits. Hence its recognisation, measurement and disclosures are not made.

Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of the qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended uses
or sale. All other borrowing costs are charged to revenue in the year of incurrence.

Taxes on Income

The current charge for income tax is calculated in accordance with the relevant tax regulations applicable to the Company.

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for
the Year. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using
the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed
depreciation or carry forward of losses, deferred tax assets are recognized only if there is virtual certainty of realization
of such assets. Deferred tax assets are reviewed at each balancesheet date.

In case the Company is liable to pay income tax under provision of Minimum Alternate Tax r-r/s. 115J8 of Income Tax Act,
1961, the amount of tax paid in excess of normal income tax liability is recognized as an asset only if there is convincing
evidence for realization of such asset during the specified period. MAT Credit Entitlement is recognized in accordance with the
Guidance Note on accounting treatment in respect of Minimum Alternate Tax (MAT) issued by The Institute of Chartered
Accountants of India.

Earnings per Share

In determining earnings per share, the Company considers the net profit after tax attributable to equity shareholders. The
number of shares used in computing basic earnings per share is the weighted average number of equity shares outstanding during
the year. The number of equity shares used in computing diluted earnings per share comprises weighted average number of
equity shares considered for deriving basic earnings per share and also weighted average number of equity shares which could
have been issued on the conversion of all dilutive potential equity shares.

Segment Reporting

As the Company's principle business activities fall within the single segment, the disclosure requirement of Accounting
Standard l7 on Segment Reporting prescribed u/s 133 of the Companies Act, 2013 ('The Act") read with Rule 7 of the
Companies (Accounts) Rule, 2014 is not applicable.

Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the
amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to
settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized
in the financial statement since this may result in the recognition of the income that may never be realized.

General: Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have
been consistently applied.

Disclosure requirements as notified by MCA pursuant to amended Schedule III:

- The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

- The Company does not have any Benami Property under Prohibition of Benami Property Transactions Act, 1988.

- The Company has not been declared a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter.

- The Company has no Scheme of Arrangement approved by the competent authority specified under Section 230 to 237 of the
Companies Act, 2013.

Previous Period figures have been re-grouped / re-classified, wherever necessary, to make them comparable with Current Period's
classification.

• The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the
lease agreements are duly executed in favour of the Company)disclosed in the financial statements included in property,
plant and equipment are held in the name of the Company as at the balance sheet date.

• There is no proceedings that have been initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

• During the year Company has not availed any overdraft facility or any other credit facilities from any bank or financial

institutions. The company is not required to submit any financial statements quarterly or half yearly to any financial

institutions other than as required for listing of the shares of the company on stock exchange.

• The Company has used the IPO funds for the specific purpose for which it was obtained.

• The Company is not declared willful defaulter by any bank or financial institution or lender. The Company does not have

any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies
Act, 1956.

• The company does not have any transaction with any company which has been Struck off by the ministry of company's

affairs under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

• The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

period. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
the Companies (Restriction on number of Layers) Rules, 2017.

• During the year the Company has not proposed any Scheme of Arrangements.

• The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other

sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding (whether recorded in writing or otherwise) that the Intermediary shall i) 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 ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

• The Company has not received any fund from any person(s) or entity(ies), 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.

• During the current financial year, 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 Income Tax
Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

• The Company does not have any previously unrecorded income.

As per our report of event date

For, H K Shah & CO. For and on behalf of Board of Directors For and on behalf of Board of Directors

Chartered Accountant Novateor Research Laboratories Limited Novateor Research Laboratories Limited

Firm Regn No : 109583W

Prerak Shah Navdeep Subhashbhai Mehta Jitin Doshi

Partner Managing Director & CFO Non Executive Director

Membership No.: 181302 DIN: 03441623 DIN: 07325340

UDIN- 24181302BKGTUP7343

Avani Jain

Date: 30^th May, 2024 Company Secretary

Place: Ahmedabad Date: 30^th May, 2024 ^{Place: Ahmedabad}