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NOTES TO ACCOUNTS

Veerhealth Care Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 40.50 Cr. P/BV 1.85 Book Value (₹) 10.92
52 Week High/Low (₹) 27/9 FV/ML 10/1 P/E(X) 103.85
Bookclosure 30/09/2024 EPS (₹) 0.20 Div Yield (%) 0.00
Year End :2024-03 

2.13 Provisions, Contingent Liabilities and Contingent Assets:

Provision is recognized when the Company has a present obligation (legal or constructive) as a result of past events and it is
probable that the outflow of resources will be required to settle the obligation and in respect of which reliable estimates can
be made.

A disclosure for contingent liability is made when there is a possible obligation, that may, but probably will not require an
outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision/ disclosure is made. The Company does not recognize a contingent liability but discloses
its existence in the financial statements.

Contingent assets are not recognized in the financial statements. Provisions and contingencies are reviewed at each balance
sheet date and adjusted to reflect the correct management estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, using
a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. Commitments include the amount of
purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent
assets and commitments are renewed at each balance sheet date.

2.14 Cash and Cash Equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits
held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

2.15 Earnings per equity share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding during the period.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Company by
the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

2.16 Recent Accounting Pronouncements

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 1, 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 recognise
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 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
labour, 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 derecognise a financial liability. The Company does not expect the amendment to have any significant impact in
its financial statements.

33. Financial Instruments - Accounting Classification and Fair Value Measurements

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current
liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due
to short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such
as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken
to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by
valuation technique:

Level 1 : Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 : Other techniques for which all inputs which have a significant effects on the recorded fair value are
observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effects on the recorded fair value that are not based on
observable market data.

There is no transfer between level 1, 2 & 3 during the year.

35 Financial Risk Management and Policies

The Company's financial risk management is an integral part of how to plan and execute its business strategies. The company's financial risk
management policy is set by the Managing Board.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates,
equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a Board of Directors, which evaluates and exercises independent control over the entire process
of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior
Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging
strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates. In order to optimize the company's position with regards to the interest income and interest expenses and to manage the interest rate
risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate
financial instruments in it total portfolio.

The Company's borrowings are primarily in fixed rate interest bearing. Hence, the Company is not significantly exposed to interest rate risk.
Foreign currency risk

The Company' export business is transacted in rupee currency, hence and consequently the Company is not exposed to foreign exchange risk
in various foreign currencies.

Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company
periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis
of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit
risk on an ongoing basis throughout each reporting period. To assess whether there is significant increase in credit risk the company
compares the risk of a default occurring an the asset at the reporting date with the risk of default as the date of initial recognition. It
considers reasonable and supportive forwarding-looking information such as:

(i) Actual or expected significant adverse changes in business,

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to mere its obligation,

(iv) Significant increase in credit risk on other financial instruments of the same counterparty.

(v) Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan
with the Company. The Company categorises a loan or receivable for write off when a debtor fails to make contractual payments greater
than 2 years past due. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to
attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

IV. Provision for expected credit losses again "II" and "III" above

The company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low.
Hence based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of above mentioned
financial assets.

Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The
company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies
related to such risks are overseen by senior management. Management monitors the company's net liquidity position through rolling forecast
on the basis of expected cash flows.

Financial Arrangements

The Company has undrawn borrowing facilities of Rs. 200 lakhs of pre-shipment export credit and Rs. 200 lakhs of post shipment credit @
10% interest which is renewable annually from HDFC Bank. the Company has not utilised the same during the year.

Maturity profile of financial liabilities

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on
contractual undiscounted payments.

Capital management

For the purposes of the Company's capital management, capital includes issued capital and all other equity reserves. The primary objective of
the Company's Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in
the light of changes in economic environment and the requirement of the financial covenants.

ForJayesh R Shah & Co. Sd/- Sd/-

Chartered Accountants Bhavin Shah Yogesh Shah

Firm Registration Number: 104182W Managing Director Director

DIN:03129574 DIN: 00169189

Sd/-

Jayesh Shah Sd/- Sd/-

Proprietor Akash Shah Rony Shah

Membership Number: 033864 Chief Financial Officer Company Secretary

Place: Mumbai Place: Mumbai

Date: 30/05/2024_Date: 30/05/2024_

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