Corporate Information

Bliss GVS Pharma Limited ("the Company") is a Public limited Company, domicile in India and is incorporated under the Companies Act, 1956 on December 11, 1984, having its registered office at 102, Hyde Park, Saki Vihar Road, Andheri (East), Mumbai, Maharashtra - 400072 and is listed on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited.

The Company is engaged in manufacturing, marketing, trading and export of pharmaceutical products. The Company is one of among the world leaders in Suppositories and Pessaries dosage forms with one of the largest portfolios in this segment. The Company have its own manufacturing facilities at Palghar which are WHO GMP approved.

1. MATERIAL ACCOUNTING POLICIESa) Basis of Preparation and Measurement

The standalone financial statements (also referred as the financial statements) have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other relevant provisions of the Act.

The standalone financial statements are prepared and presented in the form set out in Schedule III of the Act, so far as they are applicable thereto. All assets and liabilities have been classified as current/ noncurrent as per the Company's normal operating cycle and other criteria set out in the Schedule III of the Act. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of assets and liabilities.

The accounting policies are applied consistently to all the periods presented in the standalone financial statements.

The standalone financial statements have been prepared under the historical cost basis and on accrual basis except for certain financial assets and liabilities and defined benefit plan that are measured at fair value and assets held for sale measured at fair value less cost to sell, and are drawn up to comply in all material aspects with the Ind AS.

All amounts disclosed in the standalone financial statements and notes have been rounded off to the

nearest lakhs or decimal thereof as per the requirement of Schedule III, unless otherwise stated.

b) Use of Estimates and Judgements

The preparation of standalone financial statements requires management to make estimates, judgements and assumptions, that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent liabilities. The estimates and assumptions are based upon management's evaluation of the relevant facts and circumstances as of the date of standalone financial statements, which in management's opinion are prudent and reasonable. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed at each balance sheet date. Any revision to accounting estimates is recognised prospectively in current and future periods.

Essential estimates and assumptions that may affect reporting in the various item categories of the standalone financial statements are described in the respective sections of the material accounting policies. Such assumptions and estimates mainly relate to the following categories.

c) Foreign Currency Transactions

The standalone financial statements are presented in Indian Rupee, which is Company's functional and presentation currency. A Company's functional currency is that of the primary economic environment in which the company operates.

Foreign currency transactions are translated into the functional currency using the exchange rate at the date of the transaction. Foreign exchange gains/ losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in the standalone statement of profit and loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

d) Revenue Recognition

Revenue is recognised in accordance with Ind AS 115 -Revenue from Contracts with Customers.

i) Sale of Goods

Revenue from sale of manufactured and traded goods is recognised on the basis of customer contracts and performance obligation contained therein. Revenue is recognised at a point in time when the control of goods is transferred to customer. The control of goods is usually transferred to the customer depending upon the inco terms or as agreed with customer upon shipment, delivery to the customer's location, in accordance with the delivery and acceptance terms agreed with the customers. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, those goods.

Revenue is measured based on transaction price, allocated to the performance obligation. The transaction price is reduced by goods and service tax, rebates, discounts, returns or any other similar allowances.

Advance received from customer before transfer of control of goods to the customer is recognised as contract liability.

ii) Sale of Services

Revenue from services is recognised in accordance with the terms of the contract with customers when the related performance obligation is completed.

The company recognises revenue at the point of time on the basis of completion of milestones i.e.,

when the underlying services are performed as per the terms of the contract and when the control is transferred to the customer.

Upfront non-refundable payments received under these arrangements are deferred and recognised as revenue over the expected period over which the related services are expected to be performed.

iii) Profit Sharing Revenues

The Company from time to time enters into arrangements with certain business partners for the sale of its goods in certain markets. Under such arrangements, the Company sells its products to the business partners at a base purchase price agreed upon in the arrangement and is also entitled to a profit share which is over and above the base purchase price. The profit share is typically dependent on the ultimate net sale proceeds or net profits, subject to any reductions or adjustments that are required by the terms of the arrangement. Revenue in an amount equal to the base purchase price is recognised in these transactions upon delivery of products to the business partners. An additional amount representing the profit share component is recognised as revenue only to the extent that it is highly probable that a significant reversal will not occur.

iv) Export Incentives

Export entitlement under the Duty Drawback scheme and Rodtep scheme is recognised on accrual basis to the extent the ultimate realisation is reasonably certain.

v) Interest Income

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

e) Taxation

Tax Expense comprises of current tax and deferred tax.

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the applicable income tax law of the respective jurisdiction. The current tax is calculated using tax rates that have been enacted or substantively enacted, at the reporting date and any adjustment to

e) Taxation (Contd.)

tax payable in respect of previous years. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Deferred taxes are recognised for taxable temporary differences between the carrying amounts of assets and liabilities in the standalone financial statements and the corresponding tax bases used in the computation of taxable profits. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current and deferred tax is recognised in the standalone statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

f) Inventories

Inventories consist of raw materials, packing materials, consumables and spares, work-in-progress, stock-intrade, and finished goods.

Raw material, packing material, consumables and spares are valued at cost which is determined using the weighted average cost method.

Finished goods and work-in-progress are valued at lower of cost or net realisable value. Cost is determined on the moving weighted average method.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and costs necessary to make the sale. Cost includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of finished goods and work-in-progress, cost includes an appropriate share of overheads based on normal operating capacity.

The provision for obsolete and slow moving inventory is after considering factors like estimated balance shelf life, ageing of inventory, price changes, discontinuance to reflect the recoverable value of the inventory.

g) Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and cash at bank including fixed deposit with original maturity period of less than 3 months.

h) Leases

As a Lessee:

Lease contracts in which the Company is the lessee mainly pertain to buildings and vehicles.

As per Ind AS 116 - Leases, the Company assesses whether a contract contains a lease at inception of the contract. The Company recognises a right-of-use asset and corresponding lease liabilities with respect to all lease arrangements in which it is the lessee except for short-term leases (lease term of 12 months or less) and leases of low value assets.

Lease liabilities are initially measured at present value of future lease payments discounted at the Company's incremental borrowing rate.

The lease liabilities are subsequently measured by increasing the carrying amount to reflect interest on the lease liabilities and by reducing the carrying amount to reflect the lease payments made.

The right-of-use asset is measured at cost less accumulated depreciation and accumulated impairment loss, if any. The cost of right-of-use asset includes sum of initial measurement of the lease liability, any initial direct costs incurred by the Company and any lease payments made in advance of the lease commencement date. The right-of-use asset is amortised on a straight line basis from the commencement date over the shorter of lease term or useful life of right-of-use asset.

The lease payments associated with short-term leases and leases of low value assets are recognised as a Rent expense in the standalone statement of profit and loss on a straight-line basis over the lease term.

As a Lessor:

In respect of assets given on operating lease, the lease rental income is recognised in the standalone statement of profit and loss on a straight-line basis over the lease term.

i) Property, Plant and Equipment

Freehold land is carried at historical cost. Property, plant and equipment is carried at the cost of acquisition or construction less accumulated depreciation and impairment losses, if any. Cost includes expenditure that are directly attributable to the acquisition or construction of the items. Property, plant and equipment is capitalised if the future economic benefits attributable to the asset will probably flow to the Company and the cost of acquisition or generation of the asset can be reliably measured.

Property, plant and equipment that are not ready for intended use as on the date of Balance Sheet are disclosed as 'Capital Work-in-Progress'. Capital work-in-progress are carried at cost of acquisition or construction.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it meets the asset recognition criteria as per Ind AS 16 - Property, Plant and Equipment. All other repairs and maintenance are charged to standalone statement of profit and loss during the reporting period in which they are incurred.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the standalone statement of profit and loss when the asset is derecognised.

Depreciation on property, plant and equipment is provided on straight-line method based on the estimated useful life of the assets as indicated under Part C of Schedule II of the Companies Act, 2013. The estimated useful lives and residual values are reviewed annually and the effect of any changes in estimate is accounted for on a prospective basis.

Depreciation on assets costing H 5,000/- or less is provided at the rate of 100% in the year of acquisition.

j) Investment Properties

Investment properties comprise land and buildings not being used for operational or administrative purposes. It is measured using the cost model. Subsequent expenditure is capitalised to the asset's carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and cost of the item can be measured reliably.

The Company, based on technical assessment made by management expert, depreciates Investment properties under straight-line method over estimated useful lives which are similar to the useful life prescribed in Schedule II to the Companies Act, 2013. An impairment loss is recognised in addition if an asset's recoverable amount falls below its carrying amount. Investment properties comprising of buildings generally have a useful life of 30-60 years.

Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the standalone statement of profit and loss in the period of derecognition.

k) Intangible Assets

An intangible asset is an identifiable non-monetary asset without physical substance. These are measured on initial recognition at cost and subsequently are carried at cost of acquisition or generation less accumulated amortisation and impairment loss, if any. It is capitalised if the future economic benefits attributable to the asset will probably flow to the Company and the cost of acquisition or generation of the asset can be reliably measured. Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate.

Intangible assets with determinable useful life are amortised on a straight line basis over the estimated useful lives. Software is amortise over a period of upto five years.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the standalone statement of profit and loss when the asset is derecognised.

l) Impairment of non-financial assets

The carrying amounts of assets are reviewed at each Balance Sheet date for any indication of impairment based on internal/ external factors. Where the carrying value exceeds the estimated recoverable amount, provision for impairment is made to adjust the carrying value to the recoverable amount. The recoverable amount is the greater of the assets estimated net realizable value and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using an appropriate discounting rate. For the purposes of assessing impairment, assets

l) Impairment of non-financial assets (Contd.)

are grouped at the Lowest Levels for which there are separately identifiable cash inflows which are Largely independent of the cash inflows from other assets or group of assets (cash-generating units). If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

m) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised for present legal or constructive obligations arising from past events that will probably give rise to a future outflow of resources, provided that a reliable estimate can be made of the amount of the obligation.

Provisions are measured in accordance with Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets. Where the cash outflow to settle an obligation is expected to occur after one year, the provision is recognised at the present value of the expected cash outflow. The increase in the provision due to passage of time is considered as Finance Cost in the standalone statement of profit and loss.

If the projected obligation declines as a result of a change in the estimate, the provision is reversed by the corresponding amount and the resulting income recognised in the expenses in which the original charge was recognised.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

Contingent assets are not recognised and are not disclosed in the standalone financial statements unless an inflow of economic benefits is probable.

n) Employee Benefits

i) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and are recognised in the standalone statement of profit and loss as an expense at the undiscounted amount on an accrual basis. Benefits such as salaries and wages, etc. and the expected cost of the bonus/ ex-gratia

are recognised in the period in which the employee renders the related service.

ii) Defined Contribution Plans

Post-retirement contribution plans such as Provident Fund, Employee State Insurance Fund, Labour Welfare Fund and National Pension Scheme are charged to the standalone statement of profit and loss for the year when the contributions to the respective funds accrue. The Company has no further obligation other than the contribution made.

iii) Defined Benefits Plans

The Company's liability towards gratuity, which is a defined benefit plan, is determined on the basis of valuations, as at Balance Sheet date, carried out by an independent actuary using Projected Unit Credit Method.

Remeasurement of the net defined benefit liability which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling if any (excluding interest) are recognised immediately in the standalone Balance Sheet with a charge or credit recognised in Other Comprehensive Income in the period in which they occur. Re-measurement recognised in Other Comprehensive Income is recognised immediately in retained earnings and will not be reclassified to standalone statement of profit and loss.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in 'Finance costs' in the standalone statement of profit and loss.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in standalone statement of profit and loss as past service cost.

iv) Other benefits plan

Liability in respect of compensated absences becoming due or expected to be availed more than one year after the reporting date is determined on the basis of valuations, as at Balance Sheet date, carried out by an independent actuary using Projected Unit Credit Method. Actuarial gains and losses are recognised in 'Employee Benefits Expense' in the standalone statement of profit and loss in the year in which they arise.

o) Share Based Payments

The Company operates equity-settled share based remuneration plans for its employees. All services received in exchange for the grant of any share based payment are measured at their fair values on the grant date and is recognised as an 'Employee Benefits Expense' in the standalone statement of profit and loss with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the options. The increase in equity recognised in connection with share-based payment transaction is presented as a separate component in equity under 'Share Options Outstanding Account'. The amount recognised as an expense is adjusted to reflect the actual number of stock options that vest. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.

p) Financial Instruments

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.

(I) Financial Asset

(A) Initial recognition and measurement

Financial assets are recognised and measured in accordance with Ind AS 109 - Financial Instruments. Accordingly, the Company recognises financial asset only when it has a contractual right to receive cash or other financial assets from another entity.

All Financial assets, except for trade receivables are recognised initially at fair value, in the case of a financial asset not recorded at Fair Value through Profit or Loss (FVTPL), plus transaction costs that are directly attributable to the acquisition of the financial asset. Trade receivables that do not contain any significant financing component are measured at transaction price.

(B) Subsequent measurement

Subsequent to initial recognition, financial assets are measured at amortised cost, fair value through other comprehensive income (FVOCI) or FVTPL. The classification depends on the Company's business model for managing the financial assets and the contractual terms of the cash flows.

Debt instruments

There are three measurement categories into which the Company classifies its debt instruments:

At amortised cost:

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Financial assets are accounted for at amortised cost using the effective interest method and are subject to impairment. This category comprises trade receivable, loans, cash and cash equivalents, bank balances and other financial assets. Interest income from these financial assets is included in Other Income using the effective interest rate method. A gain or loss on a debt instrument is recognised in the standalone statement of profit and loss when the asset is derecognised or impaired.

At Fair Value through Other Comprehensive Income:

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, are measured at FVOCI. The movements in carrying amount are taken through Other Comprehensive Income, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognised in the standalone statement of profit and loss. Interest income from these financial assets is included in Other Income using the effective interest rate method. When the financial asset is derecognised, the cumulative gain or loss previously recognised in Other Comprehensive Income is reclassified from equity to the standalone statement of profit and loss and recognised in other gains/ losses.

At Fair Value through Profit or Loss:

Assets shall be measured at FVTPL unless it is measured at amortised cost or at FVOCI. A gain or loss on a debt instrument is recognised in the standalone statement of profit and loss and presented within other gains/ losses in the period in which it arises. Income from these financial assets is included in Other Income.

(II) Financial Liabilities

(A) Initial recognition and measurement

Financial liabilities are recognised and measured in accordance with Ind AS 109 -Financial Instruments. Financial liabilities are initially recognised at fair value if the Company has a contractual obligation to transfer cash or other financial assets to another party. Borrowings and payables are recognised net of directly attributable transaction costs.

(B) Subsequent measurement

In subsequent periods, such liabilities are measured at amortised cost using effective interest method.

(C) Derecognition

Financial liabilities are derecognised when the contractual obligation is discharged or cancelled, or has expired.

(III) Derivative Financial Instruments

The Company enters into foreign exchange forward contracts to mitigate the foreign currency exposure risk. Derivatives are initially recognised at fair value at the date the derivative contracts are entered and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in the standalone statement of profit and loss immediately.

q) Investment in Subsidiaries

Subsidiaries are all entities over which the Company has control, including through its subsidiaries. The Company accounts for its investments in subsidiaries at cost less accumulated impairment, if any.

r) Borrowing cost

Borrowing costs that are attributable to the acquisition and construction of qualifying assets are capitalised. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the standalone statement of profit and loss, within 'Finance costs'.

s) Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effect of all dilutive potential equity shares which includes all stock options granted

to employees. The number of equity shares is the aggregate of the weighted average number of equity shares and the weighted average number of equity shares which are to be issued in the conversion of all dilutive potential equity shares into equity shares.

Dilutive potential equity shares are deemed to have been converted at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

t) Recent 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, 2026, MCA has notified certain amendments, the Company has reviewed the new pronouncements and based on its evaluation has determined that it does not have any impact on its standalone financial statements.