f. Provision for Customer / Sales returns

The Company accounts for sales returns accrual by recording an allowance for sales returns concurrent
with the recognition of revenue at the time of a product sale. This allowance is based on the Company’s
estimate of expected sales returns. With respect to established products, the Company considers
its historical experience of sales returns, levels of inventory in the distribution channel, estimated shelf
life, to the extent each of these factors impact the Company’s business and markets. With respect to
new products introduced by the Company, such products have historically been either extensions of an
existing line of product where the Company has historical experience or in therapeutic categories where
established products exist and are sold either by the Company.

g. Other estimates

The preparation of financial statements involves estimates and assumptions that affect the reported
amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the
reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates
the probability of collection of accounts receivable by analysing historical payment patterns, customer
concentrations, customer credit-worthiness and current economic trends. If the financial condition of a
customer deteriorates, additional allowances may be required.

iii) Revenue Recognition:Revenue from Contracts with Customers

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made.

Revenue is measured at the transaction price for each separate performance obligation, taking into account
contractually defined terms of payment and excluding taxes or duties collected on behalf of the government.
The transaction price is net of estimated Sales returns, rebates and other similar allowances.

a) Sale of Goods

Revenue from the sale of goods is recognized at that point in time, the customer has the ability to direct
the use of, and obtain substantially all of the remaining benefits from, the asset or to restrict the access of
other entities to those benefits.

The time taken from entering into order and sale is less than 12 months and the normal credit period offered
to customers is also less than 12 months. The company offers trade Discount, Quantity Discount, cash
Discount, Discount for Shortage or quality issue discount which are factored while determining transaction
price. Revenue is recognised such that significant reversal is not highly probable. The reconciliation
between the contract price and revenue recognised is given in Note 32.

When the consideration is received, before the Company transfers goods to the customer, the Company
presents the consideration as a contract liability.

b) Rendering of ServicesRevenue from Job work service contracts

i) Job Work service contracts are recognised at point in time as control is transferred to the customer
only on dispatch. and

ii) the revenue relating to supplies are measured in line with policy set out in 4(iii)(a).

When the consideration is received, before the Company transfers goods to the customer, the Company
shall present the consideration as a contract liability and when the services rendered by the Company
exceed the payment, a contract asset is recognised excluding any amount presented as receivable.

c) Export Incentives

Export entitlements are recognized in the profit or loss when the right to receive credit as per the terms
of scheme is established in respect of the exports made and where there is no significant uncertainty
regarding the ultimate collection of the relevant export proceeds.

d) Interest Income

Interest income is calculated by applying the effective interest rate to the gross carrying amount of the
fainancial assets except when the financial asset is credit-impaired in which case the effective interest
rate is applied to the amortised cost of the financial asset.Effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset to that asset’s
gross carrying amount on initial recognition.

iv) Property, Plant & Equipment:Property, Plant & Equipment

Property, plant and equipment are tangible items that are held for use in the production or supply of goods
and services, rental to others or for administrative purposes and are expected to be used during more than
one period. The cost of an item of property, plant and equipment is recognised as an asset if and only, if it is
probable that future economic benefits associated with the item will flow to the Company and the cost of the
item can be measured reliably. Freehold land is carried at cost less accumulated impairment losses. All other
items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated
impairment losses.

Cost of an item of property, plant and equipment comprises:

• Its purchase price, all costs including financial costs till commencement of commercial production are
capitalized to the cost of qualifying assets. Tax credit, if any, are accounted for by reducing the cost of
capital goods;

• Any other costs directly attributable to bringing the asset to the location and condition necessary for it to
be capable of operating in the manner intended by management.

All other repairs and maintenance are charged to profit or loss during the reporting period in which they are
incurred.

An item of property, plant and equipment is de recognised upon disposal or when no future economic benefits
are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement
of an item of property, plant and equipment is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognised in profit or loss.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which
are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use.

Capital Work-in-progress

Capital work in progress is stated at cost, comprising direct cost, related incidental expenses and attributable
borrowing cost and net of accumulated impairment losses, if any. All the direct expenditure related to
implementation including incidental expenditure incurred during the period of implementation of a project, till
it is ready for use in intended manner, is accounted as Capital work in progress (CWIP) and subsequently the
same is transferred / allocated to the respective item of property, plant and equipment. Pre-operating costs,
being indirect in nature, are expensed to the profit or loss as and when incurred.

Compensation for impairment:

The Company recognises compensation from third parties for items of property, plant and equipment that
were impaired, lost or given up in profit or loss when the compensation becomes receivable.

Derecognition of Property, Plant and Equipment:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gain or loss from the derecognition of an item of
property, plant and equipment is recognised in the profit or loss when the item is derecognized.

v) Depreciation on Property, Plant & Equipment:

Depreciation is provided on straight line method for property, plant and equipment so as to expense the
cost over their estimated useful lives based on evaluation which are as indicated in Schedule II to Companies
Act,2013. 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.Depreciable amount of an item
of property, plant and equipment is arrived at after deducting estimated residual value. The depreciable amount
of an asset is allocated on a systematic basis over its useful life. Depreciation commences when the item of
property, plant and equipment is in the location and condition necessary for it to be capable of operating in
the manner intended by management. Depreciation ceases at the earlier of the date that the asset is classified
as held for sale (or included in a disposal group that is classified as held for sale) and the date that the asset
is derecognized. The Company review the depreciation method at each financial year-end and if, there has
been a significant change in the expected pattern of consumption of the future economic benefits embodied
in the asset, the method is changed to reflect the changed pattern. Such a change is accounted as a change in
accounting estimate on prospective basis.

vi) Intangible Assets and Amortization:

The Company identifies an identifiable non-monetary asset without physical substance as an intangible
asset. The Company recognises an intangible asset if it is probable that expected future economic benefits
attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. An intangible
asset is initially measured at cost unless acquired in a business combination in which case an intangible asset is
measured at its fair value on the date of acquisition. The Company identifies research phase and development
phase of an internally generated intangible asset. Expenditure incurred on research phase is recognised as an
expense in the profit or loss for the period in which incurred. Expenditure on development phase are capitalised
only when the Company is able to demonstrate the technical feasibility of completing the intangible asset, the
ability to use the intangible asset and the development expenditure can be measured reliably. The Company
subsequently measures all intangible assets at cost less accumulated amortisation less accumulated impairment.
An intangible asset is amortised on a straight-line basis over its useful life. Amortisation commences when the
asset is in the location and condition necessary for it to be capable of operating in the manner intended by
management. Amortisation ceases at the earlier of the date that the asset is classified as held for sale (or
included in a disposal group that is classified as held for sale) and the date that the asset is derecognised.
The amortisation charge for each period is recognised in profit or loss unless the charge is a part of the cost
of another asset. The amortisation period and method are reviewed at each financial year end. Any change
in the period or method is accounted for as a change in accounting estimate prospectively. The Company
derecognises an intangible asset on its disposal or when no future economic benefits are expected from its
use or disposal and any gain or loss on derecognition is recognised in profit or loss account as gain / loss on
derecognition of asset.

vii) Inventories:

Raw Materials, Packing Materials, Stores and Spares

Raw Materials, Packing Materials, Stores & Spares and consumables are valued at lower of cost (net of refundable
taxes and duties) and net realisable value. The cost of these items of inventory are determined on FIFO basis and
comprises of cost of purchase and other incidental costs incurred to bring the inventories to their location and
condition. 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.

Finished Goods and Work-in-progress

Work-in-progress and finished goods are valued at lower of cost and net realisable value. The cost of work-
in-progress and finished goods of inventory is determined on weighted average basis. The cost of work-in¬
progress and finished goods includes cost of conversion and other costs incurred to bring the inventories to
their present location and condition. Obsolete, slow moving and defective inventories are identified and valued
at lower of cost and net realisable value.

Stock in Trade

Stock in Trade is valued at lower of cost and net realisable value. Cost is determined on FIFO basis.

viii) Leases:As a Lessee

The Company’s leased assets consist of leases for Land. At inception of a contract, the company assesses
whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an identified asset, the company assesses whether: (i) the
contract involves the use of an identified asset (ii) the company has the right to obtain substantially all of the
economic benefits from use of the asset throughout the period of use; and (iii) the company has the right to
direct the use of the asset.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.

The right-to-use asset is subsequently depreciated using the straight-line method from the commencement
date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The
estimated useful lives of right-of-use assets are determined on the same basis as those of Property, Plant and
Equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing
rate as the discount rate.

The lease liability is subsequently measured as given below:

(a) increasing the carrying amount to reflect interest on the lease liability;

(b) reducing the carrying amount to reflect the lease payments made; and

(c) remeasuring the carrying amount to reflect any reassessment or lease modifications.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount
of the right-to-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has
been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-to-use assets and lease liabilities for short term lease that
have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease
payments associated with these leases on straight line basis as per the terms of the lease.

ix) Financial Instruments:Financial Assets

a. Initial recognition and measurement

All financial assets and financial liabilities except trade receivables are initially measured at fair value.
Fair value is adjusted for transaction costs if the financial asset or financial liability is not classified as
subsequently measured at fair value through profit or loss. Trade receivables are initially measured at
transaction price.

b. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

i) Financial assets measured at amortised cost and

ii) Financial assets at fair value through profit or loss (FVTPL)

The Company classifies its financial assets in the above mentioned categories based on:

a) The Company’s business model for managing the financial assets, and

b) The contractual cash flows characteristics of the financial asset.

i) Financial assets measured at amortised cost :

A financial asset is measured at amortised cost if both of the following conditions are met:

a) A financial asset is measured at amortised cost if the financial asset is held within a business
model whose objective is to hold financial assets in order to collect contractual cash flows and the
Contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

b) Financial assets are subsequently measured at amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income
in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

Trade receivables, Advances, Security Deposits, Cash and Cash Equivalents etc. are classified for
measurement at amortised cost.

ii) Financial assets at fair value through profit or loss (FVTPL):

A financial asset is measured at fair value through profit or loss unless it is measured at amortised cost
or fair value through other comprehensive income. In addition, The Company may elect to designate a
financial asset, which otherwise meets amortised cost , as at FVTPL. However, such election is allowed only
if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting
mismatch’).

c. Derecognition

The Company derecognizes a financial asset when contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the
sum of the consideration received and receivable is recognized in the profit or loss.

d. Impairment

The Company applies expected credit losses (ECL) model for measurement and recognition of loss allowance
on the following:

i. Trade receivables,

ii. Financial assets measured at amortized cost (other than trade receivables),

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the
original effective interest rate.

In case of trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime
ECL is measured and recognized as loss allowance. As a practical expedient, the Company uses a provision
matrix to measure lifetime ECL on its portfolio of trade receivables.

In case of other assets (listed as ii and iii above), the Company determines if there has been a significant increase
in credit risk of the financial asset since initial recognition. If the credit risk of such assets has not increased
significantly, an amount equal to 12-month ECL is measured and recognized as loss allowance. However, if
credit risk has increased significantly, an amount equal to lifetime ECL is measured and recognized as loss
allowance.

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant
increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance
based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from all possible default events
over the expected life of a financial asset. 12-month ECL are a portion of the lifetime ECL which result from
default events that are possible within 12 months from the reporting date.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in
the profit or loss.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a
range of outcomes, taking into account the time value of money and other reasonable information available as
a result of past events, current conditions and forecasts of future economic conditions.

Financial Liabilities

a. Initial recognition and measurement

At initial recognition, the Company measures a financial liabilities (which are not measured at fair value)
through profit or loss at its fair value plus or minus transaction costs that are directly attributable to the
financial liability.

The company’s financial liabilities include trade and other payables, loans and borrowings, bank overdrafts
and financial guarantee.

b. Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

i) Financial liabilities measured at amortised cost.

ii) Financial liabilities at fair value through profit or Loss. (FVTPL)

i) Financial liabilities measured at amortised cost :

All financial liabilities are measured at amortised cost. Any discount or premium on redemption/
settlement is recognised in the Profit or Loss as finance cost over the life of the liability using the
effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

ii) Financial liabilities at fair value through profit or loss (FVTPL):

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated
as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized
in OCI. These gains/ loss are not subsequently transferred to profit or loss. However, the company
may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability
are recognised in the profit or loss.

c. Derecognition

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual
obligation is discharged or cancelled or expiry. When an existing financial liability is replaced by another
from the same lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original liability and the
recognition of a new liability. The difference in the respective carrying amounts is recognised in the profit
or loss.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities.

Derivative financial instruments

The Company enters into a variety of derivative financial instruments to manage its exposure to foreign
exchange rate risks and interest rate risks.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss
is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging
instrument, in which the timing of the recognition in profit or loss depends on the nature of the hedging
relationship and the nature of the hedged item.

Off setting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance
sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

x) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with
an original maturity of three months or less from the date of acquisition), which are subject to an insignificant
risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Company’s cash management.

xi) Employee benefitsShort term employee benefits

Short Term benefits are recognised as an expense at the undiscounted amounts in the profit or loss of the year
in which the related service is rendered.

Post employment benefitsa. Defined contribution plans

The Employee and Company make monthly fixed Contribution to Government of India Employee’s
Provident Fund equal to a specified percentage of the employees’ salary, Provision for the same is made in
the year in which service are rendered by employee.

b. Defined benefit plans

The Liability for Gratuity to employees, which is a defined benefit plan, as at Balance Sheet date determined
on the basis of actuarial Valuation based on Projected Unit Credit method is funded to a Gratuity fund
administered by the trustees and managed by Life Insurance Corporation of India and the contribution
thereof paid/payable is absorbed in the accounts.

The present value of the defined benefit obligations is determined by discounting the estimated future
cash flows by reference to market yields at the end of the reporting period on government bonds that
have terms approximating to the terms of the related obligation. The net interest cost is calculated by
applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expenses in the profit or loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income.
They are included in retained earnings in the statement of changes in equity and in balance sheet. Changes
in present value of the defined benefit obligation resulting from plan amendment or curtailments are
recognized immediately in profit or loss as past service cost.

xii) Income Taxes:a) Current tax:

Current tax is determined on income for the year chargeable to tax on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period. Current tax items are recognised in correlation
to the underlying transaction either in profit or loss or OCI or directly in equity. The Company has provided
for the tax liability based on the significant judgment that the taxation authority will accept the tax
treatment.

b) Deferred tax:

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the balance sheet and the corresponding tax bases used in the computation of taxable profit. Deferred

tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised for all
deductible temporary differences, unabsorbed losses and tax credits to the extent that it is probable that
future taxable profits will be available against which those deductible temporary differences, unabsorbed
losses and tax credits will be utilised. The carrying amount of deferred tax assets is reviewed at the end of
financial year and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the period in which the liability is expected to be settled or the
asset realised, based on tax rates and tax laws that have been substantively enacted by the balance sheet
date. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current
tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Company intends to settle its current tax assets and liabilities on a net basis.

The Company restricts recognition of deferred tax asset on unabsorbed depreciation to the extent of the
corresponding deferred tax liability in absence of availability of sufficient future taxable profit which allow
the full or part of the assets to be recovered.

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

xiii) Earnings per equity share:

Basic earnings per share is calculated by dividing the profit or loss for the period attributable to the equity
holders of the Company by the weighted average number of ordinary shares outstanding during the year. For
the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.

(xiv) Statement of Cash flows

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects
of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on the
available information.

4.1 New standards, interpretations and amendments adopted by the Company:

Ministry of Corporate Affairs ("MCA”) notifies new standards or amendments to the existing standards under

Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31, 2026,

MCA has notified the Companies (Indian Accounting Standards) Amendment Rules, 2025 applicable to the Company

w.e.f. 1st April, 2025.

1) Amendments to Ind AS 21-Effects of Changes in Foreign Exchange Rates

The amendment requires the Effects of Changes in Foreign Exchange Rates to specify how an entity should
assess whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking.

The amendments also require disclosure of information that enables users of its financial statements to
understand how the currency not being exchangeable into the other currency affects, or is expected to affect,
the entity’s financial performance, financial position and cash flows.

The amendments are effective for annual reporting periods beginning on or after 1st April 2025. When applying
the amendments, an entity cannot restate comparative information.

The amendments do not have a impact on the Company's financial information.

(2) Amendments to Ind AS 1-Classification of Liabilities as Current or Non-current and Non-current
Liabilities with Covenants

In August 2025, the MCA notified amendments to paragraphs 69 to 76 of Ind AS 1 to specify the requirements
for classifying liabilities as current or non-current. The amendments clarify:

a. What is meant by a right to defer settlement

b. That a right to defer must exist at the end of the reporting period

c. That classification is unaffected by the likelihood that an entity will exercise its deferral right

d. That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms
of a liability not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan
agreement is classified as non-current and the entity’s right to defer settlement is contingent on compliance
with future covenants within twelve months.

If there is a breach of a material covenant of a long term loan arrangement on or before the end of the reporting
period, resulting in the liability becoming payable on demand as at the reporting date, and the lender agrees—
after the reporting period but before the financial statements are approved for issue—not to demand repayment
for at least 12 months as a consequence of the breach, this shall be treated as an adjusting event. Accordingly,
the entity is not required to classify the liability as current.

The amendments are effective for annual reporting periods beginning on or after 1 April 2025 retrospectively in
accordance with Ind AS 8.

The amendments do not have a material impact on the Company's financial information.

(3) Amendments to Ind AS 7 and Ind AS 107-Supplier Finance Arrangements

In August 2025, the MCA notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional
disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users
of financial statements in understanding the effects of supplier finance arrangements on an entity’s liabilities,
cash flows and exposure to liquidity risk.

The amendments do not have a material impact on the Company's financial information.

(4) International Tax Reform-Pillar Two Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments to Ind AS 12 Income Taxes in response to the OECD’s BEPS Pillar
Two rules and include:

• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the
jurisdictional implementation of the Pillar Two model rules; and

• Disclosure requirements for affected entities to help users of the financial statements better understand
an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective
date.

The mandatory temporary exception - the use of which is required to be disclosed - applies immediately.
The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 April
2025, but not for any interim periods ending on or before 31 March 2026.

The amendments had no impact on the Company's financial information as the Company is not in scope
of the Pillar Two model rules.

4.2 Standards issued but not yet effective

(a) Ministry of Corporate Affairs ("MCA”) had notified IND AS 117, Insurance Contracts vide notification no. G.S.R
492(E) dated 12/08/2024 subject to further notification by IRDAI. IRDAI has mandated the adoption of Ind AS for
insurance companies from 1 April 2026. The company is not in the business of issuing insurance contracts and
none of the contracts that the company has issued fall within the scope of Ind AS 117. Accordingly, Ind AS 117,
Insurance Contracts, does not have any impact o the financial statements of the company.

(b) MCA notified amendments to Ind AS 1 vide notification no. G.S.R.549(E) dated 13 August 2025 applicable from 1
April 2026. The amendment removes the carve out for classification of liabilities as current or non-current. The
said amendment does not have material impact on the financial statements of the company as the company
has met with all the covenants in the contract for borrowings.

a) Inventory of Raw Material includes material in transit- as on 31-03-2026 of ' Nil Lakhs (as on 31-03-2025
' Nil Lakhs)

b) Inventory of Finished Stock Includes Goods in Transit- as on 31-03-2026'1,899.33 Lakhs (as on 31-03¬
2025 '575.11 Lakhs)

c) During the period, the Company recorded inventory write-downs of ' 281.65 Lakhs (previous year
' 230.90 Lakhs). These adjustments were included in cost of material consumed and changes in
inventories.

d) Inventories pledged as Security with bank for borrowing as on 31-03-2026 of '8,010.56 Lakhs (as on 31¬
03-2025 '7,867.73 Lakhs )

(i) The general credit period inrespective on Domestic sale ranges between 30-90 days and for Export it
ranges between 90-180 days, by and large company is not charging any interest on late payment.

(ii) Credit risk is managed at the operational segmental level. The credit limit and credit period are fixed for
each customer after evaluating the financial position, past performance, business opportunities, credit
references etc. The credit limit and the credit period are reviewed regularly at periodical intervals.

(iii) Concentration risk considers significant exposures relating to industry, counter party, geography, currency
etc. The concentration of credit risk is not significant as the customer base is large and diversified.

*Note: Refer Note 48(I) for details of movement in Expected Credit Loss.

(d) Rights, Preferences and Restrictions attached to equity shares

The company has only one type of equity share of ' 10 each listed on BSE & NSE. Each of the share holders has
right give one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed
by the Board of Director is subject to the approval of the shareholders in the Annual General Meeting. In the
event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their
holding in the assets remaining after distribution of all preferential amounts.

(e) The Company has not reserved any share for issue under options and contracts or commitments for
the sale of shares or disinvestment.

(f) The Company declares and pays dividends in Indian Rupees. The Dividend proposed by the Board of
Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(g) In the Period of five years immediately preceding 31st March,2026

In Fy.2021-22 on account of Amalgamation, the company had alloted 29,728 Shares to the eligible Share Holders
of the transferor company as per the Order of Hon’ble National Company law Tribunal except that the company
has not alloted any equity shares as fully paid up without payment being received in cash or as Bonus shares
or Bought back any equity Shares. Further in the period of last five years the company has not forfeited any
amount received on issue of Shares.

Capital Reserve:

Capital reserve was realised in cash and further created on amalgamation of company and can be utilised by the
company as per provisions of the Companies Act, 2013.

General Reserve:

General reserve is created from time to time by transfer of profits from retained earnings. It does not include any
item which is transferred from other comprehensive income or equity component of financial instruments. General
Reserve can be utilized by the company for distribution to its equity shareholders of the company.

Equity Security Premium:

The amount received in excess of face value of the equity shares is recognized in equity security premium. Being
realized in cash, the same can be utilized by the company as per provisions of the Companies Act, 2013.

Retained earnings:

Retained earnings can be utilized by the company for distribution to its equity shareholders of the company. The
amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the
requirements of the Companies Act, 2013. Thus, the amounts reported above are not distributable in entirety.

Security :

Secured demand loans form Bank includes working capital loan from State Bank of India. This loan is secured against:

i) Primary Security :

Hypothecation of entire current assets of the company

ii) Collateral Security :

Charge over property, plant & Equipment of the company as under:

1. Piece & Parcel of freehold land situated lying and being at Mouje Khatraj, Taluka Kalol, District Mehsana
bearing subplots No. 9/A/1, 9/A/2, 10, 12/A, 12/B & 13 of collectively admeasuring 12124.84 Sq. mtrs of block
No. 95 together with building situated at of village Khatraj of Kalol taluka, Gandhinagar.

2. Hypothecation of Plant & Machinery and other movable assets of the company.

Interest: Working Capital Loans from banks carries Interest rate 6M MCLR plus 0.65% spread on monthly
rests & repo rate plus 2.75% P.A.

45. Details of Employee Benefits:

(a) Defined Contribution Plans

The Company offers its employees benefits under defined contribution plans in the form of provident fund.
Provident fund cover substantially all regular employees which are on payroll of the company. Both the employees
and the Company pay predetermined contributions into the provident fund and approved superannuation fund.
The contributions are normally based on a certain proportion of the employee’s salary and are recognised in the
Statement of Profit and Loss as incurred.

A sum of ' 428.51 Lakhs (March 31, 2025: ' 68.58 Lakhs) has been charged to the Statement of Profit and Loss
in respect of this plan.

(b) Defined Benefit Plan - Gratuity:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of
service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The
scheme is funded with Life Insurance Corporation of India in the form of a qualifying insurance policy.

The fund is managed by a trust which is governed by the Board of Trustees. The Board of Trustees are responsible
for the administration of the plan assets and for the definition of the investment strategy.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit
and Loss and the funded status and the amounts recognized in the Balance Sheet for the plan:

F. Characteristics of defined benefit plans and risks associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other
regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the
above benefit plans which are as follows:

a. Interest Rate Risk:

A fall in the discount rate which is linked to the G.Sec. Rate will increase the present value of the liability requiring
higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending
on the duration of asset.

b. Salary Escalation Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members.
As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

c. Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. If the return on plan asset
is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of
investments in government securities, and other debt instruments.

46. Segment Reporting

The Company’s management, consisting of the managing director, the chief financial officer and other key managerial
personnel for corporate planning, monitors the operating results of the below business segments separately for the
purpose of making decisions about resource allocation and performance assessment and accordingly, based on the
principles for determination of segments given in Indian Accounting Standard 108 "Operating Segments ” and in the
opinion of management the Company is primarily engaged in the business of "Pharmaceutical Products”. All other
activities of the Company revolve around the main business and as such there is no separate reportable business
segment.

The above fair value hierarchy explains the judgements and estimates made in determining the fair values of the
financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost for
which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as
under:

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices ) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)
There were no transfers between the levels during the year

Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and
liabilities required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2
classified assets and liabilities are readily available from the quoted prices in the open market and rates available in
secondary market respectively.

The carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances,
receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their short¬
term nature.

48 Financial risk management

The Company’s activities expose it to a variety of financial risks, including credit risk, market risk and liquidity risk.
The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial
performance. The Company’s risk management assessment and policies and processes are established to identify
and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and
compliance with the same.

The Company’s risk management is governed by policies and approved by the board of directors. Company identifies,
evaluates and hedges financial risks in close co-operation with the Company’s operating units. The company has
policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s
risk management framework. The Company manages market risk through a treasury department, which evaluates
and exercises independent control over the entire process of market risk management. The treasury department
recommends risk management objectives and policies, which are approved by Board of Directors. The activities
of this department include management of cash resources, borrowing strategies, and ensuring compliance with
market risk limits and policies.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both
regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the
audit committee.

I Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial
loss to the Company. The Company is exposed to credit risk from its operating activities (primarily trade
receivables),Loans, cash and cash equivalents and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and control relating to the customer credit risk management. Outstanding customer receivables
are regularly monitored and taken up on case to case basis. The Company has adopted a policy of dealing with
creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating
the risk of financial loss from defaults. The Company’s exposure and the credit scores of its counterparties are
continuously monitored. Credit exposure is controlled by counterparty limits that are reviewed and approved
by the management team on a regular basis. The Company evaluates the concentration of risk with respect
to trade receivables as low, as its customers are located in several jurisdictions representing large number of
minor receivables operating in largely independent markets.

The credit risk on cash and bank balances and derivative financial instruments is limited because the
counterparties are banks with high credit ratings assigned by international credit rating agencies.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers.
Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The
history of trade receivables shows a negligible provision for bad and doubtful debts. The Company establishes
an allowance for doubtful debts and impairment that represents its estimate of expected losses in respect of
trade and other receivables and investments. The company has adopted simplified approach of ECL model for
impairment. The Company has assessed that credit risk on investments, Cash and cash Equivalents & Other
bank balance, loans given & other financial assets is insignificant based on the empirical data.

i) Trade Receivables:

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country in
which the customer operates, also has an influence on credit risk assessment. The Company with various
activities as mentioned above manages credit risk. An impairment analysis is performed at each reporting
date on an individual basis for major customers. In addition, a large number of minor receivables are
grouped into homogenous groups and assessed for impairment collectively. The calculation of the same is
based on historical data. The Company does not hold collateral as security.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if
collection is doubtful. The Company also calculates the expected credit loss (ECL) for non-collection
of receivables. The Company makes additional provision if the ECL amount is higher than the provision
made for doubtful debts. In case the ECL amount is lower than the provision made for doubtful debts, the
Company retains the provision made for doubtful debts without any adjustment.

The provision for doubtful debts including ECL allowances for non-collection of receivables and delay in
collection, on a combined basis, was ' 99.40 Lakhs as at March 31, 2026 and '186.92 Lakhs as at March 31,
2025. The movement in allowances for doubtful accounts comprising provision for both non-collection of
receivables and delay in collection is as follows:

ii) Financial assets that are neither past due nor impaired

The company has assessed that credit risk on investments, loans given, Cash and Bank Balance & other
financial assets is insignificant based on the empirical data. Credit risk from balances with banks and
financial institutions is managed by the Company’s treasury department in accordance with the Company’s
assessment of credit risk about particular financial institution. None of the Company’s cash equivalents &
other bank balance, including term deposits (i.e., certificates of deposit) with banks, were past due or
impaired as at each balance sheet date.

II 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 liquidity risk by maintaining adequate reserves, banking facilities including approved
borrowing facilities sanctioned by the Parent Company, by continuously monitoring forecast and actual cash
flows and matching the maturity profiles of financial assets and liabilities. Long-term borrowings generally
mature between One to Ten years. 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. The Company’s policy is to manage
its borrowings centrally using mixture of long-term and short-term borrowing facilities to meet anticipated
funding requirements.

The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months
can be rolled over with existing lender. As of March 31, 2026 and March 31, 2025; the Company had unutilized
credit limits from banks of ' 7,700.00 Lakhs and ' 7,700.00 Lakhs respectively. The tables below analyze the
company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse
changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity
prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates
and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency
receivables and payables and all short term and long-term debt. The Company is exposed to market risk
primarily related to foreign exchange rate risk and commodity risk.

a) Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because
of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange
rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in
a foreign currency).

The Company’s foreign exchange risk arises mainly from following activities:

Foreign currency revenues and expenses (primarily in USD; EURO; CAD and BWP) : A portion of the
Company’s revenues are in these foreign currencies, while a significant portion of its costs are in Indian
Rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the
Company’s revenues measured in Indian Rupees may decrease. The exchange rate between the Indian
rupee and these foreign currencies has changed substantially in recent periods and may continue
to fluctuate substantially in the future. As of March 31, 2026, the Company had entered into derivative
contracts of ' 4,186.58 Lakhs (PY. ' 3,624.61 Lakhs) to hedge exposure to fluctuations in foreign currency
risk. The below sensitivity is calculated after netting off the impact of foreign currency forward contracts
which largely mitigate the risk.

Company does not use derivative financial instruments for trading or speculative purposes.

ii) Foreign Currency Risk Sensitivity

The sensitivity of profit or loss due to changes in the exchange rates arises mainly from non-derivative
foreign currency denominated financial instruments (mainly financial instruments denominated in USD;
EURO; CAD & BWP currencies). The same is summarized as below:

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
related primarily to the Company’s short-term borrowings with floating interest rates.

The exposure of the company’s borrowing to interest rate changes at the end of the reporting period are as
follows:

c) Price Risk

The company’s exposure to price risk arises from investments in Mutual Funds, Exchange Traded Funds & Equity
Shares (Refer Note 13). The company has not undertaken any risk mitigation measures to reduce the price risk.
The table below summarises the impact of increases / decreases of share price of the investments and profit
for the period. The analysis is based on the assumption that the market price of those investments in Mutual
Funds & Equity Shares move by 5% point on either side with all other variables held constant.

49 Capital Management:

The Company’s capital management is intended to maximise the return to shareholders and benefits for other
stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital
through the optimization of the capital structure i.e. the debt and equity balance.

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the
overall debt portfolio of the Company.

The gearing ratio at the end of the reporting period was as follows:

54. Details Of Hedged And Unhedged Exposure in Foreign Currency Denominated Monetary Items
a Exposure in foreign currency - Hedged

The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating
to the underlying transactions and firm commitments. The Company does not enter into any derivative
instruments for trading or speculative purposes.

The forward exchange contracts used for hedging foreign currency exposure and outstanding as at reporting
date are as under:

59. Additional Regulatory Information (Non Ind AS)

The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the

extent applicable:

a) There are no transactions that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

b) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the
statutory period.

c) During the year no proceedings has been initiated or pending against the Company for holding any Benami
Property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the rules made thereunder.

d) Company has not carried our any revaluation in respect of Property, Plant & Equipments and intangible Asset,
hence during the year there has been no change of 10% or more in the aggregate of the Net Carrying value of
Assets on account of revaluation of Assets in respect of Property, Plant & Equipments and intangible assets.

e) There are no intangible assets under development in the Company during the current reporting period.

f) The company has not entered in to any transaction with companies struck off under section 248 of the
Companies Act, 2013.

g) The borrowing taken by the company from the banks has been used for the specific purpose for which it was
taken.

h) The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in
accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

i) . Title deeds of immovable property other than proper taken on lease by duly executed lease agreement are held

in the name of the company.

j) There is no difference in respect of Current assets as per books and details as provided in quarterly returns filed
by the company.

60. The financial statement are approved by the Audit Committee as at its meeting on 28th May, 2026 and by the

Board of Directors on 28th May, 2026.