Fair value of the above said property at the end of the year is H 295.85 million (31 March 2024: H 250.16 million) as valued by an accredited independent valuer with specialisation in valuing these types of properties. The fair value so determined is higher than the carrying value of each respective asset.

Fair market value is the amount expressed in terms of money that may be reasonably be expected to be exchanged between a willing buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the assets to have economic utility.

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

Fair value hierarchy

The fair value measurement for the investment property has been categorised as a Level 2 fair value based on the inputs to the valuation technique used.

* The Company is exercising control over Medibox Pharma Private Limited jointly with its wholly owned subsidiary Maxcure Nutravedics Limited, the investment of which has been written off by the Company in the previous year.

** During the earlier year, Pure and Cure Healthcare Private Limited and erstwhile Akums Lifesciences Limited (both wholly owned subsidiaries of the Company) had filed a Scheme of Arrangement ('Scheme') under the provisions of Section 230 - 232 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013 read with Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, for the amalgamation of Akums Lifesciences Limited with and into Pure and Cure Healthcare Private Limited. During the previous year, the Scheme had been approved by respective NCLT of Chandigarh and New Delhi vide its order dated 24 August 2023 and 17 October 2023 respectively, with the appointed date as 1 April 2022. As per the Scheme of Arrangement, Pure and Cure Healthcare Private Limited had been allotted 4 equity shares of face value of H 10 each in Pure and Cure Healthcare Private Limited for every 100 equity shares of face value of H 10 each in erstwhile Akums Lifesciences Limited.

*** Pursuant to the Board resolution passed on 6 February 2025, as part of Company's overseas expansion strategy, the Company has incorporated a subsidiary in UK, Akums Healthcare UK Limited, with an initial investment of GBP 1 made for incorporation purposes.

# During the year, the Company has subscribed to Optionally Convertible Redeemable Preference Shares (OCRPS) of face value of H 10 each carrying coupon of 0.01% per annum issued by its wholly owned subsidiary i.e. Maxcure Nutravedics Limited and Pure and Cure Healthcare Private Limited. Such shares shall be optionally convertible to the equity shares either fully or partly at the option of the issuer at any time during the tenure of OCRPS.

^A formerly known as Burroughs Welcome Pharmacia Private Limited.

Summary of the material accounting policies and other explanatory information

for the year ended 31 March 2025

(All amounts in H million unless otherwise stated)

6.1 There are no loans due by directors or other officers of the Company or any of them either severally or jointly with any other person or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

11.6 The carrying amount of trade receivable does not include receivables of H 931.28 million (31 March 2024: H 517.51 million) which are subject to a factoring arrangement. Under this arrangement, the Company has transferred the relevant receivables to the factor in exchange for cash on non recourse basis. The Company, therefore, has derecognised the said receivables under the said arrangement. As of 31 March 2025, the Company has received H 388.92 million in respect of these receivables, since the amount has not yet been transferred to the factor, it has been presented under 'Other financial liabilities.

During the previous year, the management vide board resolution dated 18 March 2024 had decided to sell investment in its wholly owned subsidiaries: a) Amazing Research Laboratories Limited, b) May and Baker Pharmaceuticals Limited and c) Hygosap Pharma Private Limited (formerly known as Burroughs Welcome Pharmacia Private Limited).

Accordingly, in terms of Ind AS 105 - 'Non-current assets held for sale and discontinuing operations', the investments in subsidiaries were presented as 'Assets held for sale' separately from other assets in the standalone balance sheet. The assets held for sale was measured at lower of the carrying value and the fair value it is expected to be realised. Accordingly, the difference in the fair value and carrying value i.e. H 1.43 million was recognised as an exceptional expense in the standalone statement of profit and loss for the year ended 31 March 2024. During the year, the sale transactions have been concluded on 1 April 2024. (refer note 33)

* The Company has completed its Initial Public Offer (IPO) of 27,368,143 equity shares of face value of H 2 each at an issue price of H 679 per share (including share premium of H 677 per share) and as a result the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 6 August 2024. The issue comprised of fresh issue of 10,037,708 equity shares aggregating to H 6,800.00 million and offer for sale of 17,330,435 equity shares by selling shareholders, aggregating to H 11,767.37 million. [Refer note 56(b)]. In addition to this, the Company has allotted 42,91,930 equity shares of face value of H 2 each at an issue price of H 700 per share (including share premium of H 698 per share) to the ESOP Trust. Since this ESOP Trust has been considered as an extension of the Company, hence, the shares issued to them have been netted off from the equity shares outstanding at the end of the year and securities premium theron have been reduced from security premium account of the Company. (refer note 15.5 and 1.2)

15.2 Terms/rights attached to equity shares

TheCompanyhasonlyoneclassofequityshareshavingfacevalueofH2pershare.Eachequityshareholderisentitledtoonevotepershare. In the event of winding up of the Company, the equity shareholders will be entitled to be repaid remaining assets of the Company, after distribution of all preferential amounts, in the ratio of the amount of capital paid on such equity shares.

15.5 The Company vide board resolution dated 16 March 2022 and shareholder resolution dated 31 March 2022 approved the Employee Stock Option Scheme 2022 ('ESOP Scheme 2022') and authorised to create, grant, offer, issue and allot 10,72,983 employee stock options under Emloyee Stock Option Scheme 2022, for the benefit of employees and directors of the Company as decided by the board. The number of shares post bonus issue done in financial year ended 31 March 2023, resulted in increase of Employee Stock Options from 10,72,983 options to 21,45,966 options which in the previous year were further raised to 42,91,930 options. The Company vide board resolution dated 25 August 2023 decided to implement the ESOP Scheme 2022 through trust, pursuant to which the Company has registered Akums Employee Benefit Trust (ESOP Trust). On 31 May 2024, the Company has alloted 42,91,930 equity Shares to ESOP Trust to be given to the eligible employees as and when decided by the board pursuant to the ESOP Scheme 2022.

Nature of reserves

The description of nature and purpose of each of the above reserve within equity is as under:

1. Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares and share issue expenses in accordance with the provisions of the Companies Act, 2013.

2. Retained earnings

The retained earnings represents the undistributed surplus of the Company earned from its business operations and includes other comprehensive income generated on remeasurement of defined benefit plan.

3. Put option reserve

Refer note 18.1 for further details.

4. Share options outstanding account

The Company has an share option scheme under which option to subscribe for the Company's shares have been granted to certain executives and senior employees. The share options outstanding account is used to recognise the value of equity settled share based payments provided to employees, including key management personnel, as part of their remuneration. Refer to note 15.5 for further details.

18.1 On 3 October 2019, the Company executed a shareholders' agreement ("the Agreement") with its existing shareholders (Mr. Sandeep Jain and Mr. Sanjeev Jain) and Ruby QC Investments Pte. Limited ("the Investor") wherein 125,585 fully paid equity shares were issued by the Company and 70,642 equity shares were transferred by the said shareholders directly to the Investor for a total consideration of H 5,000.00 million giving the Investors 15.09% stake in the Company.

Pursuant to the Agreement, the Investor had a right to exercise an option ("put option") after 54 months from 3 October 2019 to require the Company and issue 'Exit notice' to buyback its equity shares at fair market value at the date of exercise of the put option, in case the Company is not able to give exit to the Investor through an 'initial public offer' or a secondary sale to a third party. The Company per the agreement entered was required to buy back the equity securities held by the investor within 180 days from the date of the exit notice. Further, on 9 February 2024, the Company, shareholders and the Investor entered into a waiver cum amendment agreement wherein exit notice can only be issued by the investor after 6 months from 31 December 2024, subject to the term of the waiver cum amendment agreement.

On 29 May 2024, the Investor waived off its rights which requires the Company to buyback the equity shares in accordance with the terms ofthe shareholder's agreement dated 3 October 2019 read with the waiver cum amendment agreement dated 9 February 2024. Consequently, there are no longer any contractual obligation on the Company and the financial instrument have been reclassified as equity and other equity. Accordingly, fair value changes of H 38.67 million (reversal) have been recognised in these standalone financial statements up to 29 May 2024. The put option liability amounting to H 13,615.12 million has been reclassified as follows: H 8,615.12 million to retained earnings, H 1,801.24 million to the put option reserve, and H 3,198.76 million to securities premium, all under other equity.

(a) During the previous year, the Company had made an assessment of the recoverable value of investment in its subsidiary a) Amazing Research Laboratories Limited, b) May and Baker Pharmaecuticals Limited and c) Hygosap Pharma Private Limited (formerly known as Burroughs Welcome Pharmacia Private Limited) taking into account the past business performance, prevailing business conditions and revised expectations of the future performance and decided to hived off the investment (refer note 14b). The investment in subsidiaries had been measured at lower of the carrying value and the fair value it is expected to be realised. Accordingly, the difference in the fair value and carrying value i.e. H 1.43 million was recoginsed as an exceptional expense in the statement of profit and loss of the standalone financial statements prepared for the year ended 31 March 2024.

(b) In the previous year, the Company had written off the loans given to its subsidiary companies 'Amazing Research Laboratories Limited' and 'Hygosap Pharma Private Limited (formerly known as Burroughs Welcome Pharmacia Private Limited)' amounting to H 150.85 million and H 41.61 million, respectively. These companies were engaged in pharmaceutical product trading and had incurred considerable losses from their operations, leading to a significant reduction in net worth over the years. Accordingly, an amount of H 192.46 million for the loan granted was written off in the statement of profit and loss of the standalone financial statements prepared for the year ended 31 March 2024.

Notes:

(a) Corporate guarantees given represents guarantees given to banks for the loans taken by subsidiary companies. (refer note 53)

(b) Pursuant to the assessment of certain previous years (AY 2017-2018, AY 2018-2019, AY 2020-2021 and AY 2022-2023), department has raised demands of H 36.89 million (31 March 2024: H 42.22 million) on account of:

AY 2017-2018: Disallowance of deduction u/s 80IC and 35(2AB) of Income Tax Act, 1961 amounting to H 11.51 million.

AY 2018-2019: Disallowance of deduction u/s 35(2AB) and 37(1) of Income Tax Act, 1961 amounting to H 6.26 million.

AY 2020-2021: Initiation of penalty proceeding u/s 270 A of Income Tax Act, 1961 amounting to H 5.76 million.

AY 2022-2023: Addition on account of unexplained investment u/s 69 of Income Tax Act, 1961 amounting to H 13.37 million.

The matter are pending at CIT (Appeal) level and based on the assessments by the management, consideration of merits of the case and external legal advice, the Company believes that there is a fair chance of winning the case. Accordingly, no further provisions, if any, are considered necessary to be recorded in these standalone financial statements.

(c) During the year, the State Tax Officer (GST) raised a demand in relation to the non reversal of common input tax credit under Rule 42 and 43 of the CGST Rules, pertaining to exempt supplies for the financial year 2017-18. The demand is based on the contention that the Company was required to reverse input tax credit attributable to exempt supplies. However, the Company has earned only interest income during the said period, which, as per the provisions of Rule 42 and 43 of the CGST Rules, is not considered as an 'exempt supply' for the purpose of input tax credit reversal.

The matter is currently pending before the Appellate Authority (GST). Based on an internal assessment by the management, consideration of merits of the case and consultations with external tax experts, the management is of the view that the Company has a likely chance of a favourable outcome. Accordingly, no provision has been made in these standalone financial statements in respect of the said demand.

(d) In earlier years, a vendor had initiated legal proceedings against the Company in relation to an outstanding payment for materials supplied, claiming an amount of H 0.33 million. The Company contested the claim and submitted all relevant documentation in support of its position. Based on a detailed evaluation of the case and upon consultation with legal counsel, the Company opted to resolve the matter through mediation. Consequently, in July 2024, the Company entered into a settlement agreement with the vendor and made a payment of H 0.50 million as full and final settlement of the dispute. As the matter has been conclusively settled during the year, no contingent liability exists as at the end of the year.

The above sensitivity analysis is based on a change an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the year) has been applied which was applied while calculating the defined benefit obligation liability recognised in the balance sheet.

(ix) Expected contribution

The expected future employer contributions for defined benefit plan H 26.24 million as at 31 March 2025 (31 March 2024 : H 22.46 million).

(x) Other long-term employee benefits

An amount of H 19.61 million (31 March 2024 : H 28.51 million) pertains to expense towards compensated absences.

40 Charges on assets on which mortgaged or any charge created during the year has been duly registered with Registrar of companies. Refer note 57 (c).

41 Reporting to banks/ financial institutions

The Company is regular in submission of quarterly stock statements with banks for the borrowings sanctioned against hypothecation of current assets. Further, all the quarterly statements of current assets filed by the Company with banks or financial institutions are in agreement with books of accounts.

42 Related party disclosures

In accordance with Ind AS-24 on related party disclosures where control exist and where transactions in ordinary course of business have taken place and description of the relationships as identified and certified by the management are as follows:

The Company does not have any remaining performance obligation as contracts entered for sale of goods are for a shorter duration. There are no contracts for sale of services wherein, performance obligation is unsatisfied to which transaction price has been allocated. The amounts receivable from customers become due after expiry of credit period which on an average is less than 60 days. There is no significant financing component in any transaction with the customers.

There is no difference between the contract price and actual revenue recognized during the year accordingly, no reconciliation has been provided

44 Corporate social responsibility

As per section 135 of the Companies Act, 2013, a Company, meeting the applicable threshold, required to spend at least 2% of its average net profit for the immediately preceding three financial year as per section 198 of the Companies Act 2013 on corporate social responsibility(CSR) activities. The CSR committee has been formed by the Company as per the Act and the Company has identified areas of "Promoting Education and Healthcare and Rural Development projects" for CSR activities.

The carrying amount of trade receivables, trade payables, capital creditors and cash and cash equivalent are considered to be the same as their fair values, due to short-term in nature.

The carrying value of the amortised financial assets and liabilities approximate to the fair value on the respective reporting dates.

Investments in subsidiaries and associate as at the close of the year ended 31 March 2025 are carried at cost, per the option availed by the Company under the relevant provision of Ind AS. Hence the same has not been considered in the above table.

B. Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the standalone financial statements and are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

The categories used are as follows:

Level 1: Quoted prices (unadjusted) for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

C Financial risk management

Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, investments, trade and other receivables, cash and cash equivalents and other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's management oversees the management of these risks and also ensure that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

Financial risk factors

The Company's activities expose it to a variety of financial risks:

a) Market risk

b) Credit risk

c) Liquidity risk

The primary market risk to the Company is foreign exchange risk. The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. Liquidity risk is the risk that the company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

C.1 Market risk

(a) Foreign currency risk

The entity has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the entity's functional currency. The company does not use forward contracts and swaps for managing risks associated with foreign ecurrency nor used for speculative purposes.

The Company's policy is to minimise interest rate cash flow risk exposures on external financing. At 31 March 2025 and 31 March 2024, the Company is exposed to changes in interest rates through bank borrowings carrying variable interest rates. The Company's investments in fixed deposits carry fixed interest rates.

The Company's deposits with banks are carried at amortised cost and are fixed rate instruments. They are, therefore, not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(c) Price risk

(i) Exposure

The Company is in the business of contract manufacturing wherein any increase in the price is passed to the customer and hence the Company is not exposed to significant price risk.

C.2 Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by investments in cash and cash equivalents, trade receivables and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in the statement of profit and loss.

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit risk. The Company's credit risk management policy in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. The utilization of credit limit is regularly monitored and a significant element of credit risk is covered by credit insurance. The Company's credit risk is mainly confined to the risk of customers defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring Company. In respect of trade receivables, the Company recognises a provision for lifetime expected credit losses after evaluating the individual probabilities of default of its customers which are duly based on the inputs received from the marketing teams of the Company.

All of the entity's financial assets (other than trade receivables) measured at amortised cost, are considered to have low credit risk, and the loss allowance recognised during the period was therefore limited to 12 months' expected losses. Management consider 'low credit risk' for cash and cash equivalents and other bank balances being maintained with scheduled banks. Other instruments are considered to have low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term.

The expected loss rates are based on the payment profiles of sales over a period of 36 months before the reporting date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.

Trade receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Company, and a failure to make contractual payments for a period of greater than 180 days past due.

Impairment losses on trade receivables and contract assets are presented as net impairment losses. Subsequent recoveries of amounts previously written off are credited against the same line item.

The carrying amounts of financial assets above represents the maximum exposure to credit risk.

The Compnay assumes increase in credit risk since initial recognition when financial assets are more than 30 days past due.

(b) Expected credit losses for financial assets

(i) Financial assets (other than trade receivables)

Company provides for expected credit losses on loans other than trade receivables by assessing individual financial

instruments for expectation of any credit losses.

- For cash & cash equivalents and other bank balances - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents and other bank balances and bank deposits is evaluated as very low.

- For loans and other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 12 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.

(ii) Expected credit loss for trade receivables under simplified approach

As at 31 March 2025 and 31 March 2024, the Company considered the individual probabilities of default of its financial assets (other than trade receivables) and determined that in respect of counterparties with low credit risk, no default events are considered to be possible within the 12 months after the reporting date. In respect of trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses using a simplified approach.

C.3 Liquidity risk

Liquidity risk is the risk that the entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The entity's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Management monitors rolling forecasts of the entity's liquidity position and cash and cash equivalents on the basis of expected cash flows. The entity takes into account the liquidity of the market in which the entity operates.

(a) Financing arrangements (un-utilised)

The Company has access to the following undrawn borrowing facilities at the end of the reporting period:

(b) Maturities of financial liabilities (excluding finance cost obligation for future payments, as applicable):

The tables below analyse the entity's financial liabilities into relevant maturity entitling's based on their contractual maturities.

47 Research and development expenditure (revenue) incurred on DSIR approved units

The Company has its research and development centres (approved by DSIR) located in Haridwar and Mumbai which concentrates on the development of new pharmaceutical formulations. Research and development costs incurred amounted to H 286.92 million (31 March 2024: H 292.55 million) (including depreciation of H 51.25 million (31 March 2024: H 45.22 million) and interest expense of H 0.45 million (31 March 2024: H 0.83 million) recognised in the standalone statement of profit and loss.

48 Segment reporting

The Company is primarily engaged in the manufacturing of "pharmaceuticals formulations". Hence as per, chief operating decision maker, the sale of pharmaceuticals formulations has been considered as a single operating segment per Ind AS 108 'Operating Segments' and accordingly disclosures have been limited to single operating segment.

49 Capital management

The Company's capital management objectives are to ensure the Company's ability to continue as a going concern and to provide an adequate return to shareholders through continuing growth via expansion.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

In order to achieve this overall objective, the entity's capital management, amongst other things, aims to ensure that it meets financial covenants and attached to the interest bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2025 and 31 March 2024.

54 Lease

(a) The Company recorded the lease liability at the present value of the lease payments discounted at the incremental borrowing rate and the Right-of-Use assets at its carrying amount as if the standard had been applied since the commencement date of the lease, but discounted at the lesses's incremental borrowing rate at the date of initial application.

(b) The weighted average lessee's incremental borrowing rate applied to the lease liabilities was 9% p.a.

(c) Reassessments and revaluation has been accounted for in the Right-of-use assets for the changes done in the original lease agreements in the current financial year.

(d) The table below describes the nature of the Company's leasing activities by type of right-of-use asset recognised as on 31 March 2025:

55 Share based payments

The Company has implemented Employee Stock Option Scheme 2022 (ESOP Scheme 2022) as approved by the shareholder on 31 March 2022. The scheme entitles employees and directors of the Company and its subsidiaries to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. The nomination and remuneration committee of the Board of the Company administers the Employee Stock Option Scheme 2022 and grants stock options to eligible employees.

The vesting conditions are mix of service and performance based conditions. Further, during the vesting period, there will graded vesting which will be 25% each in last 4 years of vesting period.

The options are granted at an exercise price, which is in accordance with the relevant provisions of the Companies Act, 2013, at the time of such grants. Each option entitles the holder to exercise the right to apply for and seek allotment of one equity share of face value H 2 each.

The options were granted on 1 April 2023 and were then forfeited during the previous year itself. Hence, there is no impact on the financial statements of the Company during the previous year. The fair values of options are measured based on the Black-Scholes-Merton model.

56 Other information

(a) The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall only use such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log) facility and the same was enabled at the application level. During the year ended 31 March 2025, the Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct data changes on account of recommendation in the accounting software administration guide which states that enabling the same all the time consume storage space on the disk and can impact database performance significantly.

(b) The Company has completed its Initial Public Offer (IPO) of 27,368,143 equity shares of face value of H 2 each at an issue price of H 679 per share (including share premium of H 677 per share). A discount of H 64 per share was offered to eligible employees biding in the employee reservation portion of 243,826 equity shares and as a result the equity shares of the Company got listed on National Stock exchange of India Limited (NSE) and BSE Limited (BSE) on 6 August 2024. The issue comprised of fresh issue of 10,037,708 equity shares aggregating to H 6,800.00 million and offer for sale of 17,330,435 equity shares by selling shareholders, aggregating to H 11,767.37 million.

The Company has estimated H 1,116.58 million as IPO related expenses and allocated such expenses between the Company (H 426.30 million has been adjusted to the securities premium account) and selling shareholders (H 690.28 million) in proportion to the equity shares allotted to the public as fresh issue by the Company and under the offer for sale by selling shareholders respectively. Out of the total IPO proceeds the funds available in public offer account is H 513.13 million for remitting funds for pending IPO related expenses.

The net IPO proceeds of H 81.40 million which were unutilised as at 31 March 2025 has been temporarily invested in fixed deposit by the Company.

(c) During the financial year ended 31 March 2025, from 15 January 2025 to 21 January 2025, the Income Tax Department (""IT Department"") has conducted a search and seizure operation under Section 132 of the Income Tax Act, 1961, at certain offices and manufacturing units of the Company and its subsidiaries, and the residences of selected key managerial personnel of the Company.

During the search and seizure proceedings, the Company has fully cooperated, provided the required information and responses to the IT Department. As a part of search and seizure operation, the IT department has cloned electronic books of accounts, laptops, data backups and seized certain documents, cash and other materials for further investigation. The business and operations of the Company continued without any disruptions, except some minor operational hiccups, and customer commitments were met during this period. The Company has not received any written order/ notice/ communication as the findings of such investigation from the department except for receipt of summons basis which the management is in the process of submitting the requested details to the authorities. There have been no demands which have been raised on the Company as of date. Based on the foregoing and having regard to the matters of the inquiry during the search proceedings stated above, management is of the view that no material adjustments are required to these standalone financial statements for the year ended 31 March 2025 in this regard.

(d) There are no subsequent events that occurred after the reporting date which may have an impact on these financial statements.

57 Other statutory information

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

(b) The Company do not have any transactions with companies struck off.

(c) The Company do not have any charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period, except the satisfaction of charge with respect to repayment of term loan from HSBC Bank is yet to be registered with Registrar of Companies.

(d) The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

(e) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(f) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(g) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income tax Act, 1961

(h) The Company is not declared wilful defaulter by any bank or financial institution or government or any government authority.

(i) During the previous year, the Company had complied with the approved scheme of arrangement. Refer note 5.

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