2.11 Provisions, contingent liability and contingent asset

Provisions are recognised when the Company has a present obligation (legal or constructive)
as a result of a past event, it is probable that the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the end of the reporting period, taking into account the risks and
uncertainties surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows (when the effect of the time value of money is material).

Contingent assets are disclosed in the financial statements by way of notes to accounts when an
inflow of economic benefits is probable.

Contingent liabilities are disclosed in the financial statements by way of notes to accounts,
unless possibility of an outflow of resources embodying economic benefit is remote.

2.12 Financial instruments

Financial assets and financial liabilities are recognised when Company becomes a party to the
contractual provisions ofthe instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through profit or loss) are added
to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or loss are recognised immediately in the
Statement of Profit and Loss.

2.12.1. Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily
convertible into known amounts of cash that are subject to an insignificant risk of change
in value and having original maturities of three months or less from the date of purchase,
to be cash equivalents. Cash and cash equivalents consist of balances with banks which
are unrestricted for withdrawal and usage.

2.13 Earnings per share

Basic earnings per share are computed by dividing the profit after tax by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is computed
by dividing the profit after tax as adjusted for dividend, interest and other charges to expense
or income (net of any attributable taxes) relating to the dilutive potential equity shares by the
weighted average number of equity shares considered for deriving basic earnings per share and

also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.

2.14 Operating cycle

The Company has determined its operating cycle as 12 months for the purpose of classification
of its assets and liabilities as current and non-current.

2.15 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit for the year is adjusted for
the effects of transactions of a non-cash nature, any deferrals or accruals of past or future
operating cash receipts or payments and item of income or expenses associated with investing
or financing cash flows. The cash flows are segregated into operating, investing and financing
activities.

2.16 Dividends

The company has not declared any dividend for the financial year 2023-2024.

2.17 Use of estimates and judgements

The preparation of financial statements in conformity with AS requires management to make
judgements, estimates and assumptions that a ffect the application of accounting policies and
the reported amount of assets, liabilities, income, expenses and disclosures of contingent assets
and liabilities at the date of these financial statements and the reported amount of revenues and
expenses for the years presented. Actual results may differ from the estimates.

Estimates and underlying assumptions are reviewed at each balance sheet date. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and future
periods affected.

2.18 Loans availed

During the year under consideration, the company has not availed any new term loan on the
security of current assets and immovable property of the company. The company has only
availed few business loans for day to day business operations secured by way of personal
guarantees of the promoter directors.

2.19 Related Party Disclosures

I. Names of related parties and related party relationship
Dr. Arjan Lalchandani (Managing Director of the Company)

Mr. Mohit Lalchandani (Whole-time Director and CEO of the Company)

Mrs. Anchal Gupta (Executive Director/ CFO of the Company)

a. Entities in which key managerial personnel can exercise significant influence
1 CPC Blood Bank

b. Key Managerial Personnel

1 Dr Arjan Lalchandani - Chairman and Managing Director

2 Mr. Mohit Lalchandani - Whole time Director / CEO

3 Mrs. Anchal Gupta- Executive Director / CFO

c. Relatives of Key Managerial Personnel

Ms. Manica Gupta - Non Executive Director (Sister of Anchal Gupta)

For Jain Agarwal & Company For and on behalf of DR LALCHANDANI LABS LIMITED

Chartered Accountants
FRN: 024866N

Sd/- Sd/-

CA Karan Jain Arjan Lalchandani

Partner Chairman & Managing Director

Membership No. 521992 DIN: 07014579

Place: New Delhi
Date: 30^th May, 2024