1(a) General information

Anuh Pharma Limited (‘the Company’) is engaged in the business of manufacturing and selling of “Bulk drugs and chemicals”.

The company is a public limited company incorporated and domiciled in India and has its registered office at 3-A, Shivsagar Estate, North Wing, Dr. Annie Besant Road, Worli, Mumbai- 400018, Maharashtra, India.

1(b) Material Accounting policies

(a) Basis of preparation

(i) The financial statements have been prepared in compliance with Indian Accounting Standards (Ind AS). Notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act.

(ii) The financial statements have been prepared on the historical cost basis except for the following assets and liabilities which have been measured at fair value:

1. Financial instruments measured at fair value through profit and loss

2. Financial instruments measured at fair value through other comprehensive income

3. Defined benefit plans - plan assets measured at fair value.

(b) Revenue recognition

The Company has adopted Ind AS 115, Revenue from Contract with Customers.

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

Revenue is recognised in accordance with the five-step model prescribed under Ind AS 115, namely:

(a) Identification of the contract with the customer;

(b) Identification of performance obligations in the contract;

(c) Determination of the transaction price;

(d) Allocation of the transaction price to the performance obligations; and

(e) Recognition of revenue when or as the performance obligation is satisfied Sale of goods

Revenue from sale of goods is recognised at the point in time when control of the goods passes to the customer, which generally coincides with dispatch, delivery or acceptance of goods, depending upon the terms of the contract.

Revenue is measured net of returns, trade discounts, rebates, incentives, goods and services tax and other amounts collected on behalf of third parties.

Variable consideration is recognised only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

Export Benefits

The Company has adopted Ind AS 20, Government Grants.

Export incentives, including benefits under applicable Foreign Trade Policy schemes, are recognised when there is reasonable assurance that the Company will comply with the conditions attached thereto and that the incentives will be received.

Dividend income

Dividend is recognized as revenue when the right to receive payment has been established.

Interest income

Interest income is recognised using the Effective Interest Rate ("EIR'') method. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of the financial asset.

Interest income is included under other income in the Statement of Profit and Loss.

(c) Property, Plant and Equipment (PPE)

The Company has adopted Ind AS 16, Property Plant and Equipment.

i. Recognition and measurement

All items of PPE are measured at cost less accumulated depreciation and any accumulated impairment losses, if any.

The cost of an item of PPE comprises:

a) Cost comprises purchase price, non-refundable taxes and duties, borrowing costs directly attributable to the acquisition or construction of qualifying assets and any directly attributable expenditure incurred in bringing the asset to its working condition for its intended use.

b) Subsequent expenditure is capitalised only when it is probable that future economic benefits associated with such expenditure will flow to the Company and the cost can be measured reliably. Income and expenses related to the incidental operations, not necessary to bring the item to the location and condition necessary for it to be capable of operating in the manner intended by management, are recognized in profit or loss.

The Company applies component accounting in respect of property, plant and equipment. Significant parts of an item of property, plant and equipment having different useful lives are accounted for and depreciated separately.

Any gain or loss on disposal of an item of PPE is recognized in profit and loss.

ii. Depreciation

Depreciation is provided on the Written Down Value Method over the estimated useful lives of assets. Useful lives and residual values are reviewed at each reporting date and adjusted prospectively where appropriate.

Where the useful life of an asset differs from that prescribed under Schedule II of the Companies Act, 2013, the same is supported by technical assessment carried out by management and independent technical experts.

Leasehold land (other than perpetual leasehold land) is amortised over the lease period.

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

Profit and loss on disposals are determined by comparing proceeds with carrying amount. These are included in statement of profit and loss.

(d) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortisation.

The Company has elected to continue with the carrying value of all its intangible assets as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as the deemed cost as at the transition date pursuant to the exemption under Ind AS 101.

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific to which it relates.

(e) Impairment of non-financial assets

Assets that have a definite useful life are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired.

The recoverable amount is higher of the asset's net selling price or value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized. The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

(f) Borrowing cost

The Company has adopted Ind AS 23, Borrowing Cost

Borrowing costs attributable to the acquisition/construction of qualifying assets are capitalized and form part of the cost of the qualifying assets. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue as an expense.

(g) Leases

The Company has adopted Ind AS 116, Leases

The Company recognises a Right-of-Use ("ROU") Asset and corresponding Lease Liability at the commencement date of the lease.

The lease liability is initially measured at the present value of future lease payments discounted using the interest rate implicit in the lease or, where that rate cannot be readily determined, the Company's incremental borrowing rate.

The Right-of-Use Asset is initially measured at cost comprising the amount of the lease liability recognised, initial direct costs incurred and lease payments made at or before the commencement date less lease incentives received.

Subsequently, the lease liability is measured at amortised cost using the effective interest method and the Right-of-Use Asset is depreciated over the shorter of the lease term and useful life of the underlying asset.

The Company has elected to apply the recognition exemption for short-term leases and leases of low-value assets, and recognises the related lease payments as an expense on a straight-line basis over the lease term.

Leasehold land is amortised over the remaining lease period.

(h) Income Tax

The Company has adopted Ind AS 12, Income Tax

Income tax expense comprises current and deferred tax. It is recognised in profit and loss except to the extent that it relates to items recognised directly in equity or in OCI.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, determined in accordance with the provisions of the Income-tax Act, 1961. Current tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the reporting date.

Current tax assets and liabilities are offset only if:

a) There is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority; and

b) There is intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. ii. Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases.

Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which such deductible temporary differences, losses or credits can be utilized.

Deferred tax is measured using the tax rates expected to apply in the period in which the asset is realised or the liability is settled, based on tax rates and tax laws enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset current tax assets against current tax liabilities and the deferred tax balances relate to taxes levied by the same taxation authority on the same taxable entity

The Company reviews the carrying amount of deferred tax assets at each reporting date and reduces the carrying amount to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefit of all or part of the deferred tax asset to be utilised.

(i) Inventories

The Company has adopted Ind AS 2, Inventories

Inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other cost including manufacturing overheads incurred in bringing them to their respective present location and condition.

Cost of Raw materials, stores and spares, packing materials, traded goods and finished goods - First-In-First-Out (FIFO) method.

Cost includes direct materials, direct labour and an appropriate proportion of variable and fixed production overheads allocated based on normal operating capacity.

Net realisable value represents the estimated selling price in the ordinary course of business less estimated costs of completion and estimated costs necessary to make the sale.

Materials and other items held for use in production are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost.

(j) Research and development

Revenue expenditure on Research and Development is charged to Profit and Loss Account as incurred. Capital expenditure on assets acquired for Research and Development is added to PPE.

(k) Financial instruments

The Company has adopted Ind AS 109, (Recognition & Measurement), Ind As 32, (Presentation), Ind As 107 (Disclosures)

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments also include derivative contracts such as foreign exchange forward contracts.

Financial assets Classification

The Company shall classify financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL) on the basis of its business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the

instrument.

Financial assets are initially measured at fair value plus transaction costs, except for financial assets measured at Fair Value Through Profit or Loss (FVTPL), where transaction costs are recognised immediately in the Statement of Profit and Loss.

Subsequent Measurement

Financial assets are subsequently classified and measured at:

(a) Amortised Cost;

(b) Fair Value Through Other Comprehensive Income (FVOCI); or

(c) Fair Value Through Profit or Loss (FVTPL).

The classification depends on the Company's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets.

Debt instruments are measured at amortised cost if they are held within a business model whose objective is to hold assets to collect contractual cash flows and the contractual terms give rise to cash flows that are solely payments of principal and interest.

The Company may irrevocably elect to present subsequent changes in fair value of certain equity investments in Other Comprehensive Income. Such election is made on an instrument-by-instrument basis at initial recognition.

De-recognition

Ý A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognized (i.e. removed from the Company’s balance sheet) when:

Ý The rights to receive cash flows from the asset have expired, or

Ý The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Ý When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognises the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Ý Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

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.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless they are measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in statement of profit and loss.

Financial Instruments - Expected Credit Losses

The Company recognises loss allowances using the Expected Credit Loss ("ECL") model for financial assets measured at amortised cost and debt instruments measured at FVOCI.

For trade receivables, the Company applies the simplified approach prescribed under Ind AS 109 and recognises lifetime expected credit losses from initial recognition of the receivables.

Expected credit losses are measured based on historical default experience, current conditions and forwardlooking estimates.

Financial liabilities Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit and loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Financial liabilities at fair value through Profit and Loss

Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit and loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109.

Gains or losses on liabilities held for trading are recognised in the profit and loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost. Gains and losses are recognised in profit and loss when the liabilities are derecognized.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date the derivative contract is entered into and are subsequently remeasured at fair value at each reporting date.

Where derivatives are designated as hedging instruments and hedge accounting criteria prescribed under Ind AS 109 are satisfied, gains and losses are recognised in accordance with the applicable hedge accounting model.

Where hedge accounting is not applied, gains and losses arising from changes in fair value are recognised immediately in the Statement of Profit and Loss.

(l) Employee benefits

The Company has adopted Ind AS 19, Employee Benefits

i. Short term employee benefits

Short-term employee benefits consisting of wages, salaries, social security contributions, ex-gratia and accrued leave, are benefits payable and recognized in 12 months. Short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized undiscounted during the year as the related services are rendered by the employee.

ii. Defined contribution plans

Company’s contribution for the year paid/payable to defined contribution retirement benefit schemes are charged to Statement of Profit and Loss.

The Company’s contribution towards provident fund and employee state insurance scheme for certain eligible employees are considered to be defined contribution plan for which the Company made contribution on monthly basis.

iii. Defined benefit plans

Company’s liabilities towards defined benefit plans and other long-term benefits viz. gratuity and compensated absences expected to occur after twelve months, are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognized in the Statement of other comprehensive income in the period of occurrence of such gains and losses. The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of scheme assets, if any.

Remeasurements comprising actuarial gains and losses, return on plan assets excluding amounts included in net interest and any change in the effect of asset ceiling are recognised immediately in Other Comprehensive Income and are not subsequently reclassified to the Statement of Profit and Loss.

Past service cost is recognised immediately in the Statement of Profit and Loss at the earlier of the date of the plan amendment or curtailment and the date on which the Company recognises related restructuring costs.

(m) Provisions, Contingent Liabilities and Contingent Assets

The Company has adopted Ind AS 37, Provisions, Contingent Liability and Contingent Assets Provisions are recognised when:

(a) the Company has a present legal or constructive obligation as a result of a past event;

(b) it is probable that an outflow of economic resources embodying economic benefits will be required to settle the obligation; and

(c) a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the obligation at the reporting date. Where the effect of the time value of money is material, provisions are discounted using a pre-tax discount rate reflecting current market assessments of the time value of money and risks specific to the liability.

Contingent liabilities are disclosed unless the possibility of an outflow of economic resources is remote.

Contingent assets are not recognised in the financial statements. However, contingent assets are disclosed where an inflow of economic benefits is probable.

(n) Earnings per share (EPS)

The Company has adopted Ind AS 33, Earning Per Share

Basic EPS is computed using the weighted average number of equities shares outstanding during the period.

Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the period except where the results would be anti-dilutive.

(o) Current vs non-current classification

Assets and liabilities are classified as current or non-current in accordance with the criteria prescribed under Schedule III to the Companies Act, 2013 and Ind AS 1.

An asset is treated as current, when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle.

• Held primarily for purpose of trading.

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when the Company does not have a substantive right at the reporting date to defer settlement of the liability for at least twelve months after the reporting period.

• It is expected to be settled in normal operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of liability for at least twelve months after the reporting period.

The classification of liabilities is determined based on rights and obligations existing at the reporting date, including compliance with covenant conditions where applicable.

The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non- current assets and labilities.

The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The company has identified 6-9 months as its operating cycle.

(p) Key estimates and assumptions

The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the balance sheet and statement of profit and loss. The actual amounts realised may differ from these estimates.

Estimates and assumptions are required in particular for:

• Determination of the estimated useful lives of tangible assets and intangible assets and the assessment as to which components of the cost may be capitalized.

Useful lives of tangible assets and intangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on management estimate, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers’ warranties and maintenance support. Assumptions also need to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalised.

• Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

• Provisions and contingent liabilities

The Company exercises judgment in measuring and recognising provisions and the exposures to contingent

liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as well as other contingent liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

• Measurement of fair values

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Company has an established control framework with respect to the measurement of fair values. The finance team has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values, and reports directly to the CFO.

They regularly review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values then the finance team assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: The fair value of financial instruments traded in active markets is based on quoted (unadjusted) market prices at the end of the reporting period for identical assets or liabilities

• Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs are not based on observable market data.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re assessing categorization (based on the lowest level input that is material to fair value measurement as a whole) at the end of each reporting period

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

(q) Foreign currency translation

The Company has adopted Ind AS 21, Effect of change in Foreign Exchange Act

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in the Statement of Profit and Loss in the period in which they arise, except to the extent required to be capitalised in accordance with applicable accounting standards.

Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

(r) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs (up to 2 decimal) as per the requirement of Schedule III, unless otherwise stated.

(s) Recent Pronouncements

The Ministry of Corporate Affairs vide notification dated May 07, 2025 and August 13, 2025 notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 and Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which amended certain accounting standards (see below) and are effective for annual reporting periods beginning on or after April 01,2025:

(a) Classification of Liabilities as Current or Non-current and Non-Current Liabilities with Covenants -Amendments to Ind AS 1

(b) Supplier Finance Arrangements - Amendments to Ind AS 7 and Ind AS 107

(c) International Tax Reform - Pillar Two Model Rules - Amendments to Ind AS 12

These amendments did not have any material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods

New and amended standards issued but not effective:

The MCA has issued certain amendments to Indian Accounting Standards which are not yet effective as at 31st March, 2026. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.