14.2 Rights, Preference and restriction attached to shares

The Company has one class of equity shares having a par value of H10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the board of directors are subject to shareholders approval in ensuing AGM except in case of interim dividend. In the event of liquidation the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all the preferential amount in proportion to their shareholding.

32. The FCCB bonds of US $ 4.59 Million (H3867.89 Lakhs) became due for maturity on 1^st February, 2015. The bondholder(s) or their custodian bank did not submit the bonds for conversion or redemption. FCCB Bonds liability becoming time barred, in terms of the provision of the Limitation Act, 1963, as per a legal opinion obtained by the Company. The carrying value of such FCCB Liability has not been reinstated at current exchange rate. No provision for interest payable has been made since 1^st February 2015. Further course of action to be sought from the Reserve Bank of India.

34. Fair value of cash & cash equivalents, current deposits, trade and other current receivables, trade payables and other current liabilities are approximate their carrying amount due to current maturities of these instruments.

*Previous year figures have been shown in bracket & R-Receivable and P-Payable.

# Includes exchange fluctuation effect.

^AThe remuneration of directors and key executives is determined by the remuneration committee having regard to the performance of individuals and market trends.

The above figures do not include provisions for encashable leave and gratuity, as separate actuarial valuations are not available.

Financial risk management

The Company has exposure to the following risks arising from financial instruments:

A) 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 and investments in debt securities. The carrying amount of financial assets represents the maximum credit exposure.

• Trade receivables

• Other financial assets

• Other bank balances

Credit risk management

The Company assesses and manages credit risk based on internal credit rating system, continuously monitoring defaults of customers and other counterparties, identified either individually or by the company, and incorporates this information into its credit risk controls. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

• Low

• Medium

• High

Cash and cash equivalents and other bank balances

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

Trade receivables

The Company closely monitors the credit-worthiness of the debtors through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. The Company assesses increase in credit risk on an ongoing basis for amounts receivable that become past due and default is considered to have occurred when amounts receivable become past due one year.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans and advances to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system in place ensure the amounts are within defined limits.

B) Liquidity risk

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

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity of the Company based on their contractual maturities for all non-derivative financial liabilities.

C) 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. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return.

(a) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to the US Dollar, EURO and GBP. Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the functional currency of the Company.

39a. The ratio is changed primarily due to increase in debtors in comparison to previous year.

39b. Due to capital appreciation in the value of investments.

40. In previous financial years, the company had paid a total sum of H3,234.77 Lakhs for acquiring the right, title, and interest in three Product Patents and the associated patent applications. During the current financial year, two patents were granted, and one patent was assigned to the company. Consequently, an Asset Purchase Agreement was executed for a total consideration of H1,500.00 Lakhs, and an advance of H1,080.00 Lakhs was adjusted against this amount. The remaining balance stands at H2,154.77 Lakhs. The assignment of the remaining patent is expected to be completed during FY2024-25. Company is already marketing these products pertaining to these patents by utilizing the patented technologies for over 12 years, and the company holds exclusive worldwide marketing rights for these products.

41. During the year the company has undertaken a review of all Property Plant & Equipment in line with the requirements of Ind AS - 36 on "Impairment of Assets". Based on such review no provision for impairment is required to be recognized during the year.

42. The company was contesting income tax refund matters related to AY 2009-10 2010-11 2011-12 and 2012-13, at Income Tax Appellate Tribunal Chandigarh, for obtaining income tax refund of H2818.23 Lakhs as supported by judicial precedent which is reflected in the balance sheet under current tax assets in note number 12. During the year the appellate authority has given a favourable order in favour of the company vide an order dated 24-08-2023, now the company is pursuing the matter with the Assessing officer to give the effect of the order of the appellate authority. The assessing officer has refunded 1.79 crore to the company for the AY 2009-10.

43. Other Statutory Information

• The Company does not have any Benami property where any proceeding has been initiated or pending against the Company for holding any Benami property.

• The Company does not have any transactions with struck-off companies under Section 248 of the Companies Act 2013 or Section 560 of the Companies Act 1956.

• The Company has not traded or invested in Cryptocurrency or Virtual Currency during the financial year.

• The Company has not traded or invested in Cryptocurrency or Virtual Currency during the financial year:

> 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

> provide any guarantee security or the like to or on behalf of the Ultimate Beneficiaries.

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

> 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

> provide any guarantee security or the like on behalf of the Ultimate Beneficiaries.

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

• The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act 2013) or consortium thereof in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

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

• The Company has complied 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.

44. There is no remittance in foreign currency on account of dividend.

46. The company operates only in one business segment viz "Pharmaceutical Formulation" and is engaged in manufacturing and trading of medicines.

47. Events after the reporting period

There are no subsequent events that occur after the reporting period.

48. The standalone financial statements for the year ended 31^st March 2024 were approved by the board of directors on 30^th May 2024

49. The previous year figures have been regrouped/ reclassified wherever necessary to Confirm to the current year presentation.