2. Material accounting policies:

This note provides a list of the material accounting policies
adopted in the preparation of these Indian Accounting
Standards (Ind-AS) financial statements. These policies
have been consistently applied to all the years.

2.01 Statement of Compliance:-

These Standalone financial statements (hereinafter
referred to as “financial statements”) are prepared
in accordance with the Indian Accounting Standards
(referred to as “Ind AS”) prescribed under section 133 of
the Companies Act, 2013 (‘'the Act'') read with Companies
(Indian Accounting Standards) Rules as amended from
time to time and other relevant provisions of the Act and
guidelines issued by the Securities and Exchange Board of
India (SEBI), as applicable.

The financial statements are authorized for issue by the
Board of Directors of the Company at their meeting held on
15th May, 2026.

2.02 Basis of Preparation and Presentation:

The Financial Statements are prepared in accordance
with Indian Accounting Standards (IndAS) notified under
Section 133 of the Companies Act, 2013 (“Act”) read with
Companies (Indian Accounting Standards) Rules, 2015;
and the other relevant provisions of the Act and Rules
thereunder.

Historical cost is generally based on the fair value of the
consideration given in exchange for goods and services.
The Financial Statements have been prepared under
historical cost convention basis except for the following
assets and liabilities.

a) Certain financial assets and liabilities measured at
fair value (refer accounting policy regarding financial
instruments),

b) Employee's Defined Benefit Plan as per actuarial valuation.

2.03 Current versus non-current classification

The Company has ascertained its operating cycle as
twelve months for the purpose of Current / Non-Current
classification of its Assets and Liabilities.

An asset is treated as current when it is:

i) It is expected to be settled in the normal operating cycle; or

ii) It is held primarily for the purpose of trading; or

iii) It is due to be settled within twelve months after the reporting
period; or

iv) The Company does not have an unconditional right to defer
the settlement of the liability for at least twelve months after
the reporting period. Terms of a liability that could result
in its settlement by the issue of equity instruments at the
option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.

2.04 Foreign currency translation

i) Functional and presentation currency

Items included in the financial statements are measured
using the currency of the primary economic environment
in which the entity operates (‘the functional currency'). The
Company's financial statements are presented in Indian
rupee (INR) which is also the Company's functional and
presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the
functional currency using the exchange

rate prevailing at the date of the transaction. Foreign
exchange gains and losses resulting

from the settlement of such transaction and from the
translation of monetary assets and liabilities denominated
in foreign currencies at year end exchange rate are generally
recognised in the statement of profit and loss

Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency spot
rates of exchange at the reporting date.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions.
Non- monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the
date when the fair value is determined.

(iii) Exchange differences

Exchange differences arising on settlement or translation
of monetary items are recognized as income or expense
in the period in which they arise with the exception of
exchange differences on gain or loss arising on translation
of non-monetary items measured at fair value which is
treated in line with the recognition of the gain or loss on the
change in fair value of the item (i.e., translation differences
on items whose fair value gain or loss is recognized in OCI
or profit or loss are also recognized in OCI or profit or loss,
respectively).

2.05 Fair value measurement

The Company measures financial instruments at fair value
at each balance sheet date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability
takes place either:

(i) In the principal market for asset or liability, or

(ii) In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non- financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimizing the use
of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1- Quoted(unadjusted) market prices in active
markets for identical assets or liabilities

Level 2- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
directly or indirectly observable.

Level 3- Valuation techniques for which the lowest level
input that is significant to the fair value measurement is
unobservable.

For assets and liabilities that are recognized 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 significant to
fair value measurement as a whole ) at the end of each
reporting period.

Involvement of external valuers is decided upon annually
by the Management. Selection criteria include market
knowledge, reputation, independence and whether
professional standards are maintained. Management
decides, after discussions with the external valuers, which
valuation techniques and inputs to use for each case.

At each reporting date, management analyses the
movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per
the Company's accounting policies. For this analysis,
management verifies the major inputs applied in the latest
valuation by agreeing the information in the valuation
computation to contracts and other relevant documents.

The management also compares the change in the fair
value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

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.

2.06 Revenue from contracts with customers

The Company sells, manufactured and traded range of
pharmaceutical and healthcare products. Revenue from
contracts with customers involving sale of these products
is recognized at a point in time when control of the product
has been transferred and there are no unfulfilled obligation
that could affect the customer's acceptance of the
products. Delivery occurs when the products are shipped
to specific location and control has been transferred to the
customers. The Company has objective evidence that all
criterion for acceptance has been satisfied.

(a) Sale of products:

Revenue from contracts with customers in respect of sale
of products is recognised at the point in time when control
of the goods is transferred to the customer, generally
on delivery of the goods and there are no unfulfilled
obligations.

Revenue towards satisfaction of a performance obligation is
measured at the amount of transaction price allocated to
that performance obligation.

The Company considers, whether there are other promises
in the contract in which separate performance obligations,
to which a portion of the transaction price needs to be
allocated. In determining the transaction price for the sale of
products, the Company allocates a portion of the transaction
price to goods bases on its relative standalone prices and
also considers the following:-

(i) Variable consideration

If the consideration in a contract includes a variable
amount, the Company estimates the amount of
consideration to which it will be entitled in exchange
for transferring the goods to the customer. The variable
consideration is estimated at contract inception and
constrained until it is highly probable that a significant
revenue reversal in the amount of cumulative revenue
recognised will not occur when the associated
uncertainty with the variable consideration is
subsequently resolved. The rights of return and volume
rebates give rise to variable consideration.

(ii) Right of return

The Company uses the expected value method to
estimate the variable consideration given the large
number of contracts that have similar characteristics.
This allowance is based on the Company's estimate
of expected sales returns. With respect to established
products, the Company considers its historical
experience of sales returns, levels of inventory in the
distribution channel, estimated shelf life primarily
basis remaining shelf life of product in the distribution
channel, product discontinuances, price changes
of competitive products and the introduction of
competitive new products, to the extent each of these
factors impact the Company's business and markets.
With respect to new products introduced by the
Company, such products have historically been either
extensions of an existing line of product where the
Company has historical experience or in therapeutic
categories where established products exist and
are sold either by the Company or the Company's
competitors.

(iii) Schemes

The Company operates various sales scheme
programmes under which customers are entitled
to benefits as per the respective schemes. In
accordance with Ind AS 115 - Revenue from Contracts
with Customers, such benefits are considered as
consideration payable to customers .

Further, in respect of the Company's branded business,
expenditure incurred towards trade marketing
schemes, quantity purchase schemes, visibility
initiatives and other similar programmes that provide
distinct sales and marketing benefits to the Company
are recognised as marketing expenses and accounted
for separately in the books of account.

(b) Other income(i) Interest Income

For all debt instruments measured either at amortized
cost or at fair value through other comprehensive
income, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts
the estimated future cash payments or receipts over
the expected life of the financial instrument or a
shorter period, where appropriate, to the gross carrying

amount of the financial asset or to the amortized cost
of a financial liability. When calculating the effective
interest rate, the Company estimates the expected
cash flows by considering all the contractual terms
of the financial instrument (for example, prepayment,
extension, call and similar options) but does not
consider the expected credit losses. Interest income is
included in other income in the statement of profit and
loss.

(ii) Export benefit

Revenue from export benefits arising from, duty
drawback scheme, Remission of duties and taxes on
exported product scheme are recognized on export of
goods in accordance with their respective underlying
scheme at fair value of consideration received or
receivable.

(c) Trade receivables

A Receivable is recognised if an amount of consideration
that is unconditional (i.e., only the passage of time is
required before payment of the consideration is due).
Refer to accounting policies of financial assets in
financial instruments - initial recognition and subsequent
measurement.

(d) Contract liabilities

A contract liability is recognised if a payment is received
or a payment is due (whichever is earlier) from a customer
before the Company transfers the related goods or
services. Contract liabilities are recognised as revenue
when the Company performs under the contract (i.e.,
transfers control of the related goods or services to the
customer).

2.07 Government Grants

Grants from the government are recognised at their fair
value where there is a reasonable assurance that the
grant will be received and all attached conditions will be
complied with. When the grant relates to an expense item,
it is recognised as income on a systematic basis over the
periods that the related costs, for which it is intended to
compensate, are expensed. When the grant relates to an
asset, it is recognised as income in equal amounts over the
expected useful life of the related asset.

Government grants relating to the purchase of property,
plant and equipment are included in non-current liabilities
as deferred income and are credited to profit or loss on a
straight-line basis over the expected lives of the related
assets and presented within other income.

2.08 Income Tax

The income tax expense or credit for the period is the tax
payable on the current period's taxable income based on the
applicable income tax rate by changes in deferred tax assets
and liabilities attributable to temporary differences and to
unused tax losses.

a) Current income tax

The current income tax charge is calculated on the basis
of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where
the company operate and generate taxable income.
Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation and considers
whether it is probable that a taxation authority will accept
an uncertain tax treatment. The company measures its
tax balances either based on the most likely amount
or the expected value, depending on which method
provides a better prediction of the resolution of the
uncertainty.

b) Deferred tax

Deferred income tax is provided using the liability
method, on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts in the standalone financial statements at the
reporting date.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

Deferred tax liabilities are not recognised if they arise
from the initial recognition of goodwill or an asset
or liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss
and does not give rise to equal taxable and deductible
temporary differences.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses. Deferred
tax assets are recognised to the extent that it is probable
that taxable profit will be available against which the
deductible

temporary differences and unused tax losses can be utilised,
except:

When the deferred tax asset relating to the deductible
temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss and
does not give rise to equal taxable and deductible temporary
differences.

In respect of deductible temporary differences associated
with investments in subsidiaries, associates and interests in
joint ventures, deferred tax assets are recognised only to the
extent that it is probable that the temporary differences will

reverse in the foreseeable future and taxable profit will be
available against which the temporary differences can be
utilised.

The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the
deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset
is realised, or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted at
the reporting date.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are
recognised in correlation to the underlying transaction either
in OCI or directly in equity.

Deferred tax assets and liabilities are offset where there is
a legally enforceable right to offset current tax assets and
liabilities and where the deferred tax balances relate to the
same taxation authority.

Current and deferred tax is recognised in 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.

2.09 Property, plant and equipment

Property, Plant and equipment are stated at cost, less
accumulated depreciation and accumulated impairment
losses, if any. Freehold land is carried at historical cost.
Capital work in progress is stated at cost, net of accumulated
impairment loss, if any. The cost comprises of purchase price,
taxes, duties, freight and other incidental expenses directly
attributable and related to acquisition and installation of the
concerned assets and are further adjusted by the amount of
input tax credit availed wherever applicable.

Such cost includes the cost of replacing part of the plant and
equipment and borrowing costs for long term construction
projects if the recognition criteria are met. When significant
parts of plant and equipment are required to be replaced at
intervals, the Company depreciates them separately based on
their specific useful lives. Likewise, when a major inspection
is performed, its cost is recognised in the carrying amount of
the plant and equipment as a replacement if the recognition
criteria are satisfied. All other repair and maintenance costs
are recognised in profit or loss as incurred. The present
value of the expected cost for the decommissioning of an
asset after its use is included in the cost of the respective
asset if the recognition criteria for a provision are met.

Subsequent costs are included in asset's carrying amount
or recognised as separate assets, as appropriate, only when
it is probable that future economic benefit associated with
the item will flow to the Company and the cost of item can be
measured reliably.

An item of property, plant and equipment and any significant
part initially recognized is derecognized 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 statement of profit and loss when the asset
is derecognised.

Capital work- in- progress includes cost of property, plant
and equipment under installation / under development as
at the balance sheet date.

Depreciation on property, plant and equipment is calculated
on pro-rata basis on straight-line method using the useful
lives of the assets estimated by management.

The residual values are not more than 5% of the original
cost of the assets .The residual values, useful lives and
methods of depreciation of property, plant and equipment
are reviewed at each financial year end and adjusted
prospectively, if appropriate.

Lease hold improvements are depreciated on straight line
basis over shorter of the asset's useful life and their initial
agreement period.

2.10 Intangible assets

Intangible assets acquired separately are measured on
initial recognition at cost. The cost of intangible assets
acquired in business combination is their fair value at the
date of acquisition. Following initial recognition, intangible
assets are carried at cost less accumulated amortization and
accumulated impairment losses, if any. Internally generated
intangibles, excluding capitalized development cost, are not
capitalized and

the related expenditure is reflected in statement of Profit and
Loss in the period in which the expenditure is incurred. Cost
comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended
use.

The useful lives of intangible assets are assessed as either
finite or indefinite. Intangible assets with finite lives are
amortized over their useful economic lives using Written Down
Value method and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
The amortization period and the amortization method for an
intangible asset with a finite useful life is reviewed at least
at the end of each reporting period. Changes in the expected
useful life or the expected pattern of consumption of future
economic benefits embodied in the asset is accounted for by
changing the amortization period or method, as appropriate,
and are treated as changes in accounting estimates. The
amortization expense on intangible assets with finite lives is
recognized in the statement of profit and loss in the expense

category consistent with the function of the intangible
assets.

I nta ngi ble assets with i ndefi nite usefu l lives a re not amortized,
but are tested for impairment annually, either individually
or at the cash-generating unit level. The assessment of
indefinite life is reviewed annually to determine whether the
indefinite life continues to be supportable. If not, the change
in useful life from indefinite to finite is made on a prospective
basis.

Gains or losses arising from disposal of the intangible assets
are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are
recognized in the statement of profit and loss when the
assets are disposed off.

Intangible assets with finite useful life are amortized on a
Written down Value over their estimated useful life.

Research and development cost

Research costs are expensed as incurred. Development
expenditure incurred on an individual project is recognized
as an intangible asset when the Company can demonstrate
all the following:

i) The technical feasibility of completing the intangible
asset so that it will be available for use or sale;

ii) Its intention to complete the asset;

iii) Its ability to use or sale the asset;

iv) How the asset will generate future economic benefits;

v) The availability of adequate resources to complete the
development and to use or sale the asset; and

vi) The ability to measure reliably the expenditure
attributable to the intangible asset

Following the initial recognition of the development
expenditure as an asset, the cost model is applied requiring
the asset to be carried at cost less any accumulated
amortization and accumulated impairment losses.
Amortization of the asset begins when development is

complete and the asset is available for use. It is amortized on
straight line basis over the estimated useful life. During the
period of development, the asset is tested for impairment
annually.

2.11 Borrowing Costs

Borrowing cost includes interest and other costs incurred
in connection with the borrowing of funds and charged to
Statement of Profit & Loss on the basis of effective interest
rate (EIR) method.

Borrowing costs directly attributable to the acquisition,
construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use
or sale are capitalized as part of the cost of the respective
asset. All other borrowing costs are recognized as expense in
the period in which they occur.

2.12 Lease

The Company's lease asset classes primarily comprise of
lease for land and building. The Company applies a single
recognition and measurement approach for all leases,
except for short-term leases and leases of low value assets.
The Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right to
use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and accumulated impairment losses if
any, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the
amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the
commencement date less any lease incentives received.
Right- of-use assets are depreciated on a straight-line
basis over the unexpired period of respective leases.

ii) Lease Liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present
value of lease payments to be made over the lease term.
The lease payments include fixed payments (including
in substance fixed payments) less any lease incentives
receivable, variable lease payments that depend on

an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the company and
payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment
occurs.

In calculating the present value of lease payments,
the Company uses its incremental borrowing rate at
the lease commencement date because the interest
rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.

The right-of-use assets are also subject to impairment.
Refer to the accounting policies in section ‘Impairment
of non-financial assets'.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases (i.e., those leases
that have a lease term of 12 months or less from the
commencement date and do not contain a purchase
option). It also applies the lease of low-value assets
recognition exemption to leases that are considered to
be low value. Lease payments on short-term leases and
leases of low-value assets are recognised as expense
on a straight-line basis over the lease term.

2.13 Inventoriesa) Basis of valuation:

Inventories are valued at lower of cost and net
realizable value after providing cost of obsolescence,
if any. However, materials and other items held for use
in the production of inventories 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.

The comparison of cost and net realizable value is made

on an item-by-item basis.

b) Method of Valuation:

i) Cost of raw materials has been determined by using
FIFO method and comprises all costs of purchase,
duties, taxes (other than those subsequently
recoverable from tax authorities) and all other costs
incurred in bringing the inventories to their present
location and condition.

ii) Cost of finished goods and work-in-progress
includes direct material and labour and a proportion
of manufacturing overheads based on normal
operating capacity but excluding borrowing cost.
Fixed production overheads are allocated on the
basis of normal capacity of production facilities. Cost
is determined on moving weighted average basis.

iii) Cost of traded goods has been determined by using
FIFO method and comprises all costs of purchase,
duties, taxes (other than those subsequently
recoverable from tax authorities) and all other costs
incurred in bringing the inventories to their present
location and condition.

iv) Waste / Scrap: Waste / Scrap and Byproduct
inventory is valued at NRV.

v) Net realizable value is the estimated selling price
in the ordinary course of business, less estimated
costs of completion and estimated costs necessary
to make the sale.

2.14 Impairment of non- financial assets

The Company assesses, at each reporting date, whether
there is an indication that an asset may be impaired. If any
indication exists, or when annual impairment testing for
an asset is required, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is
the higher of an asset's or cash-generating unit's (CGU)
fair value less costs of disposal and its value in use. The
recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups
of assets. When the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market
transactions are taken into account. If no such transactions
can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples,
quoted share prices for publicly traded companies or other
available fair value indicators.

The Company bases its impairment calculation on detailed
budgets and forecast calculations, which are prepared
separately for each of the Company's CGUs to which the
individual assets are allocated. These budgets and forecast
calculations generally cover a period of five years. For longer
periods, a long-term growth rate is calculated and applied to
project future cash flows after the fifth year. To estimate cash
flow projections beyond periods covered by the most recent
budgets/forecasts, the Company extrapolates cash flow
projections in the budget using a steady or declining growth
rate for subsequent years, unless an increasing rate can be
justified. In any case, this growth rate does not exceed the
long-term average growth rate for the products, industries,
or country or countries in which the Company operates, or
for the market in which the asset is used.

Impairment losses of continuing operations, including
impairment on inventories, are recognised in the statement
of profit and loss, except for properties previously revalued
with the revaluation surplus taken to OCI. For such properties,
the impairment is recognised in OCI up to the amount of any
previous revaluation surplus.

An assessment is made at each reporting date to determine
whether there is an indication that previously recognised
impairment losses no longer exist or have decreased. If
such indication exists, the Company estimates the asset's
or CGU's recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in
the assumptions used to determine the asset's recoverable
amount since the last impairment loss was recognised. The
reversal is limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor exceed the
carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in the
statement of profit and loss unless the asset is carried at a
revalued amount, in which case, the reversal is treated as a
revaluation increase.