11 Provisions (Contd..)

Critical estimates and assumptions used in calculating amounts

Customer has the right to return the product within the period specified as per terms of the contract. The Company recognises a provision for returns ' 1,656 lakhs as at 31 March 2026 (31 March 2025 - ' 1,348 lakhs). This is measured based on the previous history of sales return. Revenue is adjusted for the expected value of the return.

12 Other liabilities

Partialilarc 31 Marrh 9H9R

b) Defined Benefit Plans - Gratuity

The Company has a defined benefit gratuity plan (funded). The Company's defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

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 most recent actuarial valuation of the present value of the defined benefit obligation for gratuity was carried out as at 31 March 2026 by an independent actuary. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company's financial statements as at 31 March 2026

The above sensitivity analyses are based on a change in 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 reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The principal assumptions used in determining gratuity and leave encashment for the Company's plan are shown below

Description of risk exposures

Valuations are performed on certain basic set of predetermined assumptions and other regulatory frame work which may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

Interest rate risk

A fall in the discount rate which is linked to the Government Security 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.

Concentration Risk

Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Salary 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.

Mortality risk

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Asset liability matching risk

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

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.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

26 Commitments

a) Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for ' 1,413 lakhs [31 March 2025'158 lakhs] (net of capital advances of ' 700 lakhs [31 March 2025'50 lakhs]).

The Company has paid the entire lease premium for the leasehold land and computers as a result of which there is no corresponding lease liability against the Right of use asset.

b) Company as lessor:

During the year, the Company has not given any assets on lease to any party.

The Company's financial liabilities includes borrowings, trade and other payables. The Company's financial assets includes investment, loans, trade and other receivables, cash and cash equivalents and other bank balance. The Company is exposed to credit risk, market risk, liquidity risk, currency risk and interest rate risk.

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The Board of Directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports to the Board of Directors on its activities. 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 periodically to reflect changes in market conditions and the Company's activities. The Company, through its training, 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.

i. Credit risk:

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 Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade receivables and other financial assets. The credit risk relates to the certain balance is as follows :

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. 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 Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments etc.) and applying experienced credit judgment. Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. The Company has used expected credit loss (ECL) model (under simplified approach) for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

Cash and cash equivalents

As at the year end, the Company held cash ' 11,568 lakhs (31 March 2025 - ' 2,870 lakhs). The cash and cash

equivalents are held with banks.

Bank balances other than cash and cash equivalents

As at the year end, the Company held Bank balances other than cash and cash equivalents ' 4,110 lakhs (31

March 2025 - Rs.11,091 lakhs). Other bank balances are held with banks.

Other financial assets

a) Other financial assets which include rent deposits, loans to employees and insurance claim receivable for which the credit risk has not increased significantly since initial recognition, accordingly the expected probability of default is low.

b) Other financial assets also includes security deposits and employee advances where the loss allowance is measured based on life time expected credit loss as per the table given below.

e) Significant estimates and judgments Impairment of financial assets

The impairment provisions for financial assets disclosed above are based on assumptions about risk of default and expected loss rates. The Company uses estimate in making these assumptions and selecting the inputs to the impairment calculation, based on the past history, existing market conditions as well as forward looking estimates at the end of each reporting.

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 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.

The table below provides details regarding the contractual undiscounted cash flows. Balances due within twelve months equal their carrying balances as the impact of discounting is not significant.

iii. Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs. The Company uses derivative to manage market risk.

iv. 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 manages its foreign currency risk by hedging transactions through natural hedge as well as by entering into forward contracts.

v. Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates. It is estimated that an increase in 50 bps change in benchmark rate would result in a loss of approximately ' 15 lakhs whereas a decrease in 50 bps change in benchmark rate would result in a profit of approximately ' 15 lakhs. The movement in basis point for the interest rate sensitivity analysis is based on the currently observable market environment.

Fair value sensitivity analysis for fixed-rate instruments

The Company's fixed rate borrowings are carried at amortised cost. 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.

The following methods and assumptions were used to estimate the fair values:

1 Fair value of cash and cash equivalents, bank balances, trade receivables, other current financial assets, trade payables, borrowings, other current financial liabilities approximate their carrying amounts largely due to short term maturities of these instruments. In determining the fair value measurement, the impact of potential climate risk, including legislation, which may affect the fair value measurement of these assets and liabilities has been considered by the management.

2 The amount of fair value of loans to employee and security deposits given and taken is considered to be insignificant in value and hence carrying value and fair value is considered as same.

3 Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

4 The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

5 Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

- the fair value of investment in unquoted mutual funds is determined using the Net asset Value (NAV) available from the fund.

- In case of unquoted equity instruments, their respective cost has been considered as an approximate estimate of fair value because of a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

6 There are no transfers between level 1 and level 2 during the period.

32 Segment information

a) Description of segments and principal activities

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The Managing Director, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the CODM of the Company. The CODM reviews the Company's performance on the analysis of profit before tax at overall level. Accordingly, the Company has only one reportable business segment which is manufacturing and marketing of pharmaceutical products as per Ind AS 108. ("Operating Segments")

a. Availing of services (refer Sr. no. 1)

License Fees: The Company pays quarterly license fees to RPG Enterprises for using its brand. A benchmarking study was carried out to compare license fee structure with other conglomerates and the rate being charged is in line with industry benchmarks. The first quarter's payment uses the previous year's rate, and any adjustments (true-ups) are settled in the next billing cycle. These adjustments are unsecured and interest free.

Other charges: The Company receives monthly various services from related parties under terms comparable to those offered to third parties. Prices and payment terms are mutually agreed upon, benchmarked against similar third-party transactions.

b. Reimbursement / Recovery of Expenses (refer Sr. no. 2 & 8)

These transactions represent expenses incurred by the related party on behalf of the Company or expenses incurred by the Company on behalf of the related party. The reimbursement / recovery of expenses is made on actual cost incurred basis without markup. The amount recoverable / reimbursed are unsecured and interest free.

c. Items of PPE purchased from the related party (refer Sr. no. 3)

Purchases are made from related party on the same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. The Company mutually negotiates and agrees purchase price and payment terms with the related party by benchmarking the other purchases being made from non-related parties.

d. Remuneration paid / payable (including sitting fees) (refer Sr. no. 4 and 5)

The amounts disclosed in the table are the amounts recognised as an expense during the financial year related to KMPs and directors. Compensation to KMPs includes ' 1,500 lakhs towards long term incentive plan which was paid in FY 2024-25. Further, Post-employment benefits includes employer's contribution towards Provident Fund but excludes provision for gratuity and compensated absences, which is determined on the basis of actuarial valuation done on overall basis of the Company.

e. Contribution made to employee benefit funds (refer Sr. no. 10 & 14)

Contribution to employee benefit funds are made as per applicable statutory laws and regulations.

f. Credit balance outstanding at period end (refer Sr.no 11, 13)

Trade payables and other payables balances are unsecured, interest free and require settlement in cash. No guarantee or other security has been given against these payables.

g. Debit balance and allowance for credit impairment (refer Sr. no 12)

Trade receivables and other receivables balances are unsecured, interest free and require settlement in cash. For the year ended 31 March 2026, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2025: ' Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

a) During the previous year, a fire incident occurred at one of the manufacturing blocks of the Company's API plant located in Navi Mumbai. Following the incident, the Company carried out a comprehensive assessment of the losses incurred and accordingly submitted an insurance claim based on the estimated loss. Based on the final assessment and estimated costs, the Company had recognised a cumulative loss of ' 2,295 lakhs up to the period ended 31 December 2025. During the quarter ended 31 March 2026, the insurance company acknowledged the claim amount of ' 3,137 lakhs as full and final settlement of the claim. The Company had received ' 2,050 lakhs in multiple tranches up to 31 December 2025. The balance amount of ' 1,087 lakhs was received in two tranches, comprising ' 652 lakhs during the quarter ended 31 March 2026 and ' 435 lakhs in April 2026. Accordingly, after offsetting the insurance proceeds received during the year against the loss recognised on account of the fire incident, the Company has recognised a net income of ' 2,475 lakhs for the year and disclosed the same as an Exceptional item. In addition, during the quarter ended 31 March 2026, the Company received the final settlement of ' 791 lakhs towards compensation for loss of profit arising from business interruption due to the fire incident. The same has been recognised under Other Income for the said quarter.

b) On 21 November 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Company has assessed and disclosed the incremental impact of these changes on the basis of the best information available and guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact as "Impact of New Labour Codes" under "Exceptional Items" in the standalone statement of profit and loss for the year ended 31 March 2026. The incremental impact on provisions for employee benefits expenses of ' 1,169 lakhs (' 61 lakhs for the quarter ended 31 March 2026 and ' 1,108 for the period ended 31 December 2025) primarily arises due to change in wage definition. The Company continues to monitor the finalisation of Central/ State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/rules are notified.

c) Exceptional items for the year ended 31 March 2026 relates to write off of an intangible asset under development. The Company does not expect any future economic benefits to flow to the Company hence the cost incurred till date have been charged off during the quarter.

36 Events after the reporting period

The Board of Directors has recommended a final dividend of ' 24 (Rupees Twenty four only) per equity share (300% on the face value of ' 8 each), subject to the approval of shareholders at the ensuing Annual General Meeting.

37 Other Statutory Information

i. The Company does not have any Benami property. No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made there under.

ii. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

iii. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iv. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v. 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:

(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.

vi. 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:

(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.

vii. The Company has complied with the numbers of layers prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with Companies (Restriction in number of layers) Rules, 2017.

viii. 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.

ix. The Company has not been declared as wilful defaulter by any banks or financial institutions or other lenders.

x. The Company is maintaining its books of accounts in electronic mode and these books of accounts are accessible in India at all the times and the back up of books of accounts has been kept in servers physically located in India on a daily basis from the applicability date of the accounts rules i.e; 5 August 2022 onwards.

xi. The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled at the database level in so far relates to the accounting software. Further no instance of audit trail feature being tampered with was noted in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years.