15.2 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of INR 10 Per share. Each Holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in the proportion to the number of equity shares held by the shareholders.

Terms of the Borrowings

The Company has availed the Working Capital Loans and Cash Credit Facility from ICICI Bank Limited . Working Capital Loans are repayable in 60 equated monthly installments. The loan carries interest rate of Repo Rate 4.50%. Working Capital Loans and Cash Credit Facility are secured by Current Assets, Movable Fixed Assets as primary security and Immovable Fixed Assets as collateral security. These loans are also guaranteed by the CVR Enterprise LLP, SRJR Lifesciences LLP (promoters of the Company) and personal guarantee of Mr. Bafna Mahaveer Chand upto an extent of Rs.1,500 Lakhs.

Loan received from related party is repayable after completion of one year from the end of the financial year at the option of the related party .

There is no default as on the balance sheet date in the repayment of borrowings and interest thereon.

The Company is generally regular in registering and filling of satisfaction of charges with ROC within the statutory period.

32. EXCEPTIONAL ITEM

Exceptional items for the previous year ended 31^st March 2025 represents:

(a) Derecognition of certain inventory items amounting to INR 37.56 Lakhs

(b) Derecognition of Intangible Asset under Development amounting to INR 177 Lakhs. The management has derecognised the Intangible Asset under Development as it does not foresee that any future economic benefit would accrue to the Company in respect of the expenditure incurred in the earlier financial years towards obtaining certain product registrations.

33. EARNING PER SHARE (EPS)

The Company's Earnings Per Share ('EPS') is determined based on the net profit attributable to the shareholders of the

Company. Basic earnings per share is computed using the weighted average number of shares outstanding during the year.

Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent

shares outstanding during the year including share options, except where the result would be anti-dilutive.

Diluted Earnings Per Share, when anti dilutive is restricted to Basic Earnings Per Share

34. EMPLOYEE BENEFITS

Leave of absence and encashment

The Company has different leave plans including paid leave of absence plans and encashment of leave plans for employees at different grades and provision has been made in accordance with Ind AS-19. The total amount of provision available for the unavailed leave balances as at 31^st March 2026 is INR 54.39 Lakhs (31^st March 2025 INR 61 Lakhs). Liability has been created based on actuarial valuation done during the year, with the Discount rate of 7.16% (31^st March 2025: 6.71%)

Defined Benefit Plans

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years and fixed term employees for 1 year are eligible for gratuity. The amount of gratuity payable on retirement / termination is the amount calculated as per the Payment of Gratuity Act, 1972. The scheme is funded by the Company. The liability for the same is recognized on the basis of actuarial valuation.

The Government of India has enacted four labour codes by consolidating 29 existing labour laws, which have become effective from 21^st November 2025. Based on an assessment carried out by the Company in accordance with the guidance issued by the Institute of Chartered Accountants of India and considering the information available, impact has been Codes has been recognised in the Statement of Profit and Loss.

Defined Contribution Plans

In respect of the defined contribution plan (Provident fund), an amount of INR 72.26 Lakhs (31^st March 2025 : INR 76.28 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

In respect of the State Plans (Employee State Insurance), an amount of INR 5.38 Lakhs (31^st March 2025 : INR 6.54 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

During the year the Company has provided Bonus and incentive of INR 97.88 Lakhs (31^st March 2025: INR 107.18 Lakhs) as expenditure in the Statement of Profit & Loss.

*The amounts referred herein above corresponds to the claims made by the relevant statutory authorities pertaining to pre - Corporate Insolvency Resolution Process ("CIRP") period. By virtue of Honourable NCLT order approving the resolution plan, the relevant claims stands extinguished. The Company has also filed writ petitions before the Honourable Madras High Court requesting the demand to be quashed.

**The Company has received the demand of INR 265.42 Lakhs including penalties for the period FY 2017-18 to FY 2020-21against which a liability of INR 29.95 Lakhs has been paid by the Company. The Company has disputed INR 235.47 Lakhs and filed the appeal with CGST Appeals. Based on the management assessment, the Company is of the opinion that said demand will be set aside and there will be no liability.

***The Company has received the demand towards the recovery of GST Refunds availed amounting to INR 331.09 Lakhs along with interest and penalty thereon for the period FY 2018 to FY 2024. The Company has disputed the demand and sutiable stay has been granted by the Honorable Madras High Court. Based on the management assessment, the Company is of the opinion that said demand will be set aside and there will be no liability.

^AThe Income Tax Refund amounting to INR 45.17 Lakhs has been adjusted against the previous years demand by the Income Tax Department. The Company has filed the writ petition in Honourable Madras High Court against such demands which has been issued by the Centralized Processing Centre ("CPC"). Subsequently, the Company has received the entire refund amount, along with orders from the Income Tax Department confirming the extinguishment of the related demands/liabilities. Accordingly, based on the refunds and orders received from the Income Tax Department, the management considers that no liability remains outstanding in respect of the aforesaid demands.

36. SEGMENT REPORTING

The Company is engaged in the business of manufacturing and trading of pharmaceuticals products. The Chief Operating Decision Maker monitors the operating results of its business for the purpose of making decisions about resource allocation and performance. Manufacturing and trading of pharmaceuticals products is considered as only segment.

38. CAPITAL MANAGEMENT

The objective of the Company's capital management structure is to ensure sufficient liquidity to support its business, to ensure the Company's ability to continue as a going concern and provide adequate return to shareholders.

The Company monitors capital and the long term cash flow requirements including externally imposed capital requirements of the business on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face.

Management assesses the Company's capital requirements in order to maintain an efficient overall financing structure while avoiding excessive leverage. This takes into account the subordination levels of the Company's various classes of debt. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial Risk Management Framework

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

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing each of these risks, which are summarised below.

i) Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and borrowing.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's borrowing with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost. The Company's exposure to interest rate risk relates primarily to interest bearing financial liabilities. Interest rate risk is managed by the Company on an on-going basis with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in interest rates.

There are no hedging instruments to mitigate this risk.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from transactions i.e. import and export of materials, recognised assets and liabilities denominated in a currency that is not the Company's functional currency. The Company's foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company's policies.

Commodity Risk

Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases of Active Pharmaceutical Ingredients and other direct materials, whose prices are exposed to risk of fluctuation over a period of time. The prices of the Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company's cost. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of 31^st March, 2026, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if the customer or that counterparty to the financial instrument fails to meet its contractual obligations and arises principally from the Company's receivables from customers, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

Credit risk management

The finance function of 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 assesses the credit risk for each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

The risk parameters are same for all financial assets for all periods presented. The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days past due . A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

Trade Receivables: The Company has exposure to credit risk from trade receivables on sale of pharmaceuticals products and related services. The Company has used Expected Credit Loss (ECL) model for assessing the impairment loss. For that purpose, the Company uses a provision matrix to compute the ECL amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers. The Company ensures concentration of credit does not significantly impair the financial assets since the customers to whom the exposure of credit is given are well established and reputed industries engaged in their respective field of business. The creditworthiness of customers to which the Company grants credit in the normal course of the business is monitored regularly. The Company provides for expected credit loss under simplified approach.

iii. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. The Company's treasury team is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's liquidity position through rolling forecasts on the basis of expected cash flows.

40. FAIR VALUE MEASUREMENTS

(i) Fair value hierarchy

Financial assets and Financial Liabilities measured at fair value in the Financial Statements 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:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data.

42. LEASES

The Company has entered into certain cancellable lease agreements mainly for office premises, and infrastructure facilities which are renewable on mutual agreement with the parties. At the date of commencement of the lease, the Company recognises a right of use asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for short-term leases and low value leases. The Company applies the "short term lease" & "low value leases" recognition exemptions for these leases.

Rent Expenses recorded for Short term and Low value lease was INR 82.37 Lakhs (31^st March, 2025: INR 22.53 Lakhs).

43. INCOME TAX

The Company has opted for the new tax regime U/s 115BAA of the Income Tax Act from Financial Year ended 31^st March 2023. The Company has carried forward losses and unabsorbed depreciation of earlier years. Therefore, the Company has not accounted any Income Tax on the profits earned during the year.

44. DEFERRED TAX ASSETS/(LIABILITIES)-NET

Deferred Tax assets arises on account of carried forward losses and unabsorbed tax depreciation. As a prudent measure DTA is not recognised since it is not probable that future taxable profits will be available against which carried forward losses and unabsorbed tax depreciation can be utilised.

45. CORPORATE SOCIAL RESPONSIBILITY

(a) As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR activities are promoting education, preventive healthcare, special education and employment enhancing vocation skills, rural /nationally recognised/ Paralympic and Olympic sports, and Rural Development.

46. DISCLOSURES OF THE TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or

Section 560 of Companies Act, 1956 during the financial year ended 31^st March 2026.

47. ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013

(i) The Company does not have any Benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 and Rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.

(iii) The Company does not hold any investments in any subsidiary(ies), therefore, the provisions for compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended) are not applicable.

(iv) Details of transactions of advances or loans or investments of funds (either from the borrowed funds or share premium or any other sources or kind of funds), as prescribed to any other person(s) or entity (ies), including foreign entities (intermediaries)

A The Company has 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:

(a) 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

(b) Provide any guarantee, security or the loan to or on behalf of the ultimate beneficiaries

B The Company has 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:

(a) 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

(b) Provide any guarantee, security or the loan on behalf of the ultimate beneficiaries

(v) The Company does not have 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).

(vi) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year ended 31^st March 2026.

(vii) No Scheme of Arrangements have been approved by the Competent Authority in terms of Sections 230 to 237 of the Act, during the financial year ended 31^st March 2026.

(viii) The Company has not revalued its property, plant and equipment.

49. The limited audit trail facility currently available in the accounting software needs to be upgraded to meet the applicable requirements. The Company has initiated the necessary steps to configure/upgrade the accounting software to enable the recording of an audit trail for all relevant transactions.

Daily Back Up

As per the Companies (Accounts) Fourth Amendment Rules, 2022, a back up of the books of account and papers maintained in electronic mode, shall be kept in servers physically located in India on a daily basis. The Company has complied with the requirements in current and previous years.

50. Previous year figures have been regrouped/reclassified where ever necessary, to conform to those of the current year.

51. As allowed under Schedule III of the Companies Act, 2013, Financial Statements are prepared in Lakhs and rounded off to two decimals. The amounts / numbers below one thousands are appearing as zero.