2.13 Provisions, contingent assets and contingent liabilities

Provisions

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. 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.

The amount recognized as a provision is the best estimate of
the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties
surrounding the obligation. When some or all of the economic

benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as
an asset if it is virtually certain that reimbursement will be
received and the amount of the receivable can be measured
reliably.

Onerous contracts

A provision for onerous contract is recognised when the
expected benefits to be derived by the company from a contract
are lower than the unavoidable cost of meeting its obligation
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 assets associated.
Contingent liabilities

Contingent liabilities are disclosed when there is a possible
obligation or present obligations that may but probably will
not, require an outflow of resources embodying economic
benefits or the amount of such obligation cannot be measured
reliably. When there is possible obligation or a present
obligation in respect of which likelihood of outflow of resources
embodying economic benefits is remote, no provision or
disclosure is made.

These are reviewed at each financial reporting date and
adjusted to reject the current best estimates.

Contingent assets

Contingent asset is not recognised in consolidated financial
statements since this may result in the recognition of income
that may never be realised. However, when the realisation of
income is virtually certain, then the related asset is not a
contingent asset and is recognized.

Provisions, contingent liabilities and contingent assets are
reviewed at each Balance Sheet date

2.14 Segment reporting

An operating segment is a component of the Company that
engages in business activities from which it may earn revenues
and incur expenses, including revenues and expenses that
relate to transactions with any of the Company’s other
components, and for which discrete financial information is
available. All operating segments’ operating results are
reviewed regularly by the Company’s Chief Operating Decision
Maker (CODM) to make decisions about resources to be
allocated to the segments and assess their performance.
The business of the Company falls within a single line of
business i.e. business of home healthcare and wellness
products. All other activities of the Company revolve around
its main business.

2.15 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows,
cash and cash equivalents include cash in hand, demand
deposits held with banks, 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.

2.16 Statement of cash flows

Statement of cash flows is made using the indirect method,
whereby profit before tax is adjusted for the effects of

transactions of non-cash nature, any deferral accruals of past
or future cash receipts or payments and item of income or
expense associated with investing or financing of cash flows.
The cash flows from operating, financing and investing
activities of the Company are segregated.

2.17 Earnings per share

Basic earnings/(loss) per share are calculated by dividing the
net profit/(loss) for the year attributable to equity shareholders
by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares
outstanding during the period is adjusted for events of bonus
issue and share split. For the purpose of calculating diluted
earnings/ (loss) per share, the net profit or loss for the year
attributable to equity shareholders 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 adjusted for the proceeds receivable
had the equity shares been actually issued at fair value (i.e.
the average market value of the outstanding equity shares).
Dilutive potential equity shares are deemed converted as of
the beginning of the year, unless issued at a later date. Dilutive
potential equity shares are determined independently for each
year presented. The number of equity shares and potential
dilutive equity shares are adjusted retrospectively for all years
presented for any share splits and bonus shares issues
including for changes effected prior to the approval of the
financial statements by the Board of Directors.

2.18 Equity

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.

2.19 Derivative financial instruments - Forex Derivatives
Initial recognition and subsequent measurement

The Company uses derivative financial instruments, such as
forward contracts to hedge its foreign currency risks. Forex
derivative instruments entered by the Company has been
categorised Financial Assets or Financial Liabilities at Fair
Value Through Profit or Loss. Such derivative financial
instruments are initially recognised at book value on the date
on which a derivative contract is entered into and are
subsequently re-measured at fair value through profit or loss
(FVTPL). Derivatives are carried as financial assets when the
fair value is higher and as financial liabilities when the fair
value is lower. Any gains or losses arising from changes in the
fair value of derivative financial instrument are recognised in
the statement of profit and loss under the head other income.

2.19 Recent Indian Accounting Standards (Ind AS)

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 31, 2025, MCA has not notified any new
standards or amendments to the existing standards applicable
to the Company

Note:- As per approval of Honourable National Company Law Tribunal (‘NCLT’) for the scheme of arrangement (‘Scheme’) among
Nectar Biopharma Private Limited (demerged company) and Nureca Private Limited (resulting company) and their respective shareholders
and creditors under section 230 to 232 and other applicable provisions of the Companies Act 2013, with effect from appointed date of 1
April 2019, the Company had cancelled 10,000 shares and issued 1,000,000 shares for consideration other than cash on 10 June 2020.

e) Initial public offer

During the ended 31 March 2021, the Company had made Initial Public Offering of 2,500,175 equity shares of face value of Rs. 10 each
for cash consisting 2,496,675 equity shares to public other than employees at a price of Rs. 400 per equity share (including a share
premium of Rs. 390 per equity share) and 3,500 equity shares to the employees at a price of Rs. 380 per equity share (including a share
premium of Rs. 370 per equity shares) aggregating to Rs. 1000.00 million. These equity shares were allotted on 23 February 2021 and
the equity share of the Company got listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 25
February 2021.

b. Defined benefit plans
Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed five years of service
are entitled to specific benefit. The level of benefit provided depends on the member’s length of service and salary retirement age. The
employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service. The same is payable on
termination of service or retirement or death whichever is earlier.

The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date
using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the
estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans is
based on the market yields on government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are
recognized immediately in the Other Comprehensive Income (OCI).

This is an unfunded benefit plan for qualifying employees. This scheme provides for a lump sum payment to vested employees at
retirement, death while in employment or on termination of employment. Vesting occurs upon completion of five years of service.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit
obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and
retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination
of salary increase, discount rate and vesting criteria.

The following table sets out the status of the defined benefit plan as required under Ind AS 19 - Employee Benefits:

Notes:

a. The company measure investment to subsidiaries at cost. For quoted investment market value is taken as fair value.

b. Fair valuation of the loans and borrowings is 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. Subsequent measurements of all assets and liabilities is at amortised
cost, using effective interest rate (EIR) method.

c. Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount
due to the short term maturities of these instruments.

d. The Company has entered in future and options contract for shares during the current year. These derivative contracts are recognised
in other income at FVTPL and all outstanding contracts are marked to market as at year end.

There are no transfers between level 1, level 2 and level 3 during the years presented.

There has been no financial assets or financial liabilities that has been fair valued through OCI.

Note 38 - Financial risk management

Risk management framework

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of
these risks. The Company’s senior management is responsible to ensure that Company’s financial risk activities which are governed by
appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s
policies and risk objectives. The board of directors reviews and agrees policies for managing companies exposure of market list,credit risk
and liquidity risk which are summarized below.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises interest rate risk and currency risk financial instruments affected by market risk include trade receivables,
borrowings and investments measured at fair value through profit and loss account. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters while optimizing the return.

(a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of change in
market interest rates. The Company does not expose to the risk of changes in market interest rates as there are no borrowings
expect vehicle loans.

(b) Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign
exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating
activities (when certain purchases and trade payables are denominated in a foreign currency).

The Company undertakes transactions denominated in foreign currencies and consequently, exposes to exchange rate fluctuations.
The Company does not enter into trade financial instruments including derivate financial instruments for hedging its foreign
currency risk. The appropriateness of the risk policy is reviewed periodically with reference to the approved foreign currency risk
management policy followed by the Company.

Exposure to currency risk :

The carrying amount of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of each
reporting period are as follows:

Sensitivity analysis:

The following table details the Company’s sensitivity to a 5% increase and decrease in the INR against relevant foreign currencies.
5% is the rate used in order to determine the sensitivity analysis considering the past trends and expectations of the management
for changes in the foreign currency exchange rate. The sensitivity analysis includes the outstanding foreign currency denominated
monetary items and adjust their transaction at the year end for 5% change in foreign currency rates. A positive number below
indicates a increase in profit or equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the
INR against the relevant currency, there would be a comparable impact on the profit or equity balance below would be negative.
This analysis is performed on foreign currency denominated monetary financial assets and financial liabilities outstanding as at
the year end. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact
of forecast sales and purchases.

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.

(a) Trade receivables

Customer credit risk is managed as per the Company’s established policy, procedures and control relating to customer credit risk
management. Outstanding customer receivables are regularly monitored to ensure money is received regularly.

Based on internal assessment which is driven by the historical experience/current facts available in relation to default and delays
in collection thereof, the credit risk for trade receivables is considered low. The Company estimates its allowance for trade
receivable using lifetime expected credit loss. Individual receivables which are known to be uncollectible are written off by reducing
the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other
expenses.

(b) Cash and cash equivalents and deposits with banks

Credit risk on cash and cash equivalents and bank deposits is limited as the Company generally invests in deposits with banks
with high credit ratings assigned by domestic credit rating agencies.

(c) Security deposits

The Company furnished security deposits to its lessor for obtaining the premises on lease and margin money deposits to banks.
The Company considers that its deposits have low credit risk or negligible risk of default as the parties are well established entities
and have strong capacity to meet the obligations. Also, where the Company expects that there is an uncertainty in the recovery of
deposit, it provides for suitable impairment on the same.

(d) Other financials assets

These asset are consider to be low credit risk as these parties / banks are well established entities and have strong capacity to
meet the obligations.

(iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without
incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and
collateral requirements. The Company closely monitors its liquidity position. The Company has maintained fixed deposit and made
investment in mutual fund to address any liquidity requirement and continue as a going concern.

(iv) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments
affecting a particular industry. The Company has significant business through online market place portal and few distributors.(refer note
32C for sale to major parties)

Note 39- Capital risk management

(i) Risk Management

’For the purpose of the Company’s capital management, capital includes issued equity capital, and all other equity reserves attributable to
the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions, business strategies and
future commitments. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return
capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital
plus net debt. The Company includes within net debt, trade payables and borrowings and other liabilities, less cash and cash equivalents.

Note - 42 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company does not have any transactions with companies struck off in current financial year.

(iii) The Company has not revalued its property, plant and equipment (including right of use assets) or intangible assets or both during the
current or previous year.

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

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding that the Intermediary shall: (a) 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 (b) provide any guarantee, security or the like to or on
behalf of the Ultimate Beneficiaries

(vi) 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: (a) 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 (b) provide any guarantee, security
or the like on behalf of the Ultimate Beneficiaries

(vii) The Company has not 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

(viii) The Company has borrowings for vehicle loan from bank and there is no requirement to file the quarterly current asset stock statement
with bank.

(ix) None of the entities in the Company have been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(x) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(xi) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(xii) The Company including the “Companies in the Group” (as per the provisions of the Core Investment Companies (Reserve Bank)
Directions, 2016) do not have any Core Investment Company (“CIC”)

Note 44 (a)-Code on Social Security

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on
November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will
assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.

Note 45-Subsequent Event

(a) Subsequent to the year end, the Company has purchased land amounting to INR 63.18 million from a third party for future expansion of
the business.

(b) The Board of Directors of the Holding Company, in its meeting dated May 5, 2025, has principally decided to approve the merger of
Nureca Technologies Private Limited (wholly owned subsidiary)with Nureca Limited (holding company) subject to necessary statutory
and regulatory approvals under applicable laws to be taken in due course.

For B S R & Co. LLP For and on behalf of Board of Directors of Nureca Limited

Chartered Accountants

Firm registration number: 101248W/W-100022

Ankush Goel Saurabh Goyal Aryan Goyal

Partner Managing Director Whole-time Director & CEO

Membership Number : 505121 DIN : 00136037 DIN : 00002869

Place: Guangzhou (China) Place: Guangzhou (China)

Date: 05 May 2025 Date: 05 May 2025

Naresh Gupta Nishu Kansal

Chief Financial Officer Company Secretary

Membership No.: 504198 Membership No.: A33372

Place: Gurugram Place: Chandigarh Place: Chandigarh

Date: 05 May 2025 Date: 05 May 2025 Date: 05 May 2025