2.8 Provisions, contingent liabilities and contingent assets
Provisions

Provisions are recognised 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. Expected future operating losses are not provided for.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
liability.

Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but

probably will not, require an outflow of resources. Where there is a possible obligation or a presentobligation in respect of
which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually
and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the
period in which the change occurs.

Onerous contracts

A provision for onerous contracts is recognised in the statement of profit and loss when the expected benefits to be
derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the
contract. The provision is measured at the present value of 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.

Reimbursement rights

Expected reimbursements for expenditures required to settle a provision are recognised in the statement of profit and
loss only when receipt of such reimbursements is virtually certain. Such reimbursements are recognised as a separate
asset in the balance sheet, with a corresponding credit to the specific expense for which the provision has been made.

2.9 Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services.

For contracts that permit the customer to return an item, revenue is recognised to the extent that it is highly probable that
a significant reversal in the amount of cumulative revenue recognised will not occur.

Therefore, the amount of revenue recognised is adjusted for expected returns, which are estimated based on the
historical data. In these circumstances, a refund liability and a right to recover returned goods asset are recognised.

Revenue from the sale of goods is measured at the transaction price which is consideration received or receivable, net of
returns, Goods and Service Tax (GST) and applicable trade discounts, allowances and chargeback. Revenue includes
shipping and handling costs billed to the customer.

Services Income

Revenue is measured based on the consideration specified in a contract with a customer. Revenue is recognised at a
point in time when the Company satisfies performance obligations by transferring the promised services to its customers.

2.10 Interest Income

Interest Income mainly comprises of interest on Margin money deposit with banks relating to bank guarantee and term
deposits.

Interest income or expense is recognised using the effective interest method (EIR).

Interest is recognized using the time-proportion method, based on rates implicit in the transactions.

2.11 Tax Expenses

Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates
to a business combination, or items recognised directly in equity or in Other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including uncertain tax treatments, do

not meet the definition of income taxes, and therefore accounted for them under Ind AS 37 Provisions, Contingent
Liabilities and Contingent Assets.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the
taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, at the reporting date. Current income tax relating to items recognised outside the statement of profit and loss is
recognised outside the statement of profit and loss (either in OCI or in equity in correlation to the underlying transaction).
Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax
regulations are subject to interpretation and establishes provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary differences and deductible temporary
differences.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

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 tax asset to be utilised.

Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside the statement of profit and loss is recognised outside the statement of
profit and loss (either in OCI or in equity in correlation to the underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year. The
deferred tax asset is recognised for MAT credit available only to the extent that it is probable that the Company will pay
normal income tax during the specified year, i.e., the year for which MAT credit is allowed to be carried forward. In the year
in which the Company recognizes MAT credit as an asset, it is created by way of credit to the statement of profit and loss
and shown as part of deferred tax asset. The Company reviews the "MAT credit entitlement" asset at each reporting date
and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period.

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation authority, the tax paid is
recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable. Otherwise,
expenses and assets are recognized net of the amount of taxes paid. The net amount of tax recoverable from, or payable
to, the taxation authority is included as part of receivables or payables in the balance sheet.

2.12 Earnings Per Share
Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the weighted average number of equity shares
outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination of basic earnings per share)
after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with
dilutive potential equity shares by the weighted average number of equity shares considered for deriving basic earnings
per share adjusted for the weighted average number of equity shares that would have been issued upon conversion of all
dilutive potential equity shares.

2.13 Segment reporting

The Company is engaged in the in " manufacture of Drug Intermediates & Bulk Dugs " and the same constitutes a single
reportable business segment as per Ind AS 108.And hence segment reporting specified as per IND AS 108 is not applicable.

2.14 Share capital

Incremental costs directly attributable to the issue of equity shares are recognised as a deduction from equity. Income
tax relating to transaction costs of an equity transaction is accounted for in accordance with Ind AS 12.

2.15 Determination of fair values

The Company's accounting policies and disclosures require the determination of fair value, for certain financial and non¬
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on
the following methods. When applicable, further information about the assumptions made in determining fair values is
disclosed in the notes specific to that asset or liability. A fair value measurement of a non-financial asset takes into
account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the asset in its highest and best use.

Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an exchange of non-monetary assets, is
measured at fair value on the acquisition date. For this purpose, fair value is based on appraised market values and
replacement cost.

Inventories

The fair value of inventories acquired in a business combination is determined based on its estimated selling price in the
ordinary course of business less the estimated costs of completion and sale, and a reasonable profit margin based on
the effort required to complete and sell the inventories.

Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference to their quoted market price at the
reporting date. For debt securities where quoted market prices are not available, fair value is determined using pricing
techniques such as discounted cash flow analysis. In respect of investments in mutual funds, the fair values represent net
asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent
the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such
units from the investors. Accordingly, such net asset values are analogous to fair market value with respect to these
investments, as transactions of these mutual funds are carried out at such prices between investors and the issuers of
these units of mutual funds.

2.16 New standards adopted by the company
Ind AS 1 - Presentation of financial information

The amendments require companies to disclose their material accounting policies rather than their significant
accounting policies. Accounting policy information, together with other information, is material when it can reasonably be
expected to influence decisions of primary users of general-purpose financial statements. The Company does not expect
this amendment to have any significant impact in its financial statement.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning
obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12
(recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company does not expect this amendment to have any significant impact in
its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of
a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition,
accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty".
Entities develop accounting estimates if accounting policies require items in Restated financial information to be
measured in a way that involves measurement uncertainty. The company does not expect this amendment to have any
significant impact in its financial statements.

2.17 New Accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified
any new standards or amendments to the existing standards applicable to the Company.

This is the notes to financial statements referred to in our report of even date.

for NSVR & Associates LLP For and on behalf of the Board of Directors of

Chartered Accountants Vineet Laboratories Limited

Firm Regn No:008801S/S200060

V Gangadhara Rao N G. Venkata Ramana B. Satyanarayana Raju

Partner Managing Director Whole-Time Director & CFO

Membership Number: 219486 DIN: 00031873 DIN: 02697880

UDIN: 24219486BKFBAV7725

Place: Hyderabad Ramesh Kumar Bandari

Date: 29 May 2024 Company Secretary

M.No:A24519