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 21st May, 2025.

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 he 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 (net of variable
consideration) 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

customers and are accordingly presented
as a deduction from revenue in the
Standalone Statement of Profit and Loss.

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 elates
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.

.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, 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 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.

Intangible assets with indefinite useful lives are 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 straight line basis over their
estimated useful life.

Research ana aeveiopment 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.

.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.

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 Inventories

a) 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.

.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.

2.15 Impairment of non- financial assets