14.2 Rights, Preference and restriction attached to shares

The Company has one class of equity shares having a par value of C 10 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.

ii) 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

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.

• 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:

H 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

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

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

• Since the company does not have any working capital limit or borrowings from any bank of financial institution 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.

39a. Decrease in current ratio is mainly due to increase in current liabilities and better utilization of working capital during the year. 39b. Increase in ratio is due to higher sales and efficient utilization of working capital as compared to previous year.

39c. Increase in ROE is mainly attributable to higher profitability during the year resulting in improved returns to shareholders.

39d. Net profit ratio improved due to increase in revenue, better cost control and improved operational efficiency during the year 39e. Increase in ROCE is due to higher earnings before interest and tax and efficient utilization of capital employed.

NOTE: 40

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.

NOTE: 41

The Company has received outstanding income tax refunds, including interest, amounting to H1,096.79 lakhs for AY 2010-11,2013-14, 2023-24, and 2025-26. The balance refund for AY 2011-12 and AY 2012-13 remain under litigation.

NOTE: 42 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 advanced or loaned or invested funds to any other person or entity including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

NOTE: 45

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

NOTE: 46 EVENTS AFTER THE REPORTING PERIOD

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

NOTE: 47

The standalone financial statements for the year ended 31st March 2026 were approved by the board of directors on 26th May 2026. NOTE: 48

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