(a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a part value of Re.l per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Segment Details

The Company is engaged in manufacture of Bulk Drugs & Intermediates which in the context of Accounting Standard-17 issued by the Institute of Chartered Accountants of India is considered as a single segment.

The geographic segments individually contributing 10 percent or more of the Company's revenues and segment assets are shown separately:

1. Employees Benefits:

1.1 Company has not renewed the Group Gratuity Scheme with LIC .

Therefore gratuity valuation has been done through Independent agency as per Ind As 19.As per the valuation made by the Independent Agency the present amount of accrued gratuity comes to Rs 1144391 (Previous Year Rs 2922601/-) on estimates of discounts @7.37% (7.12%) and escalation on salaries @5 % (5%).

1.2 Defined Contribution Plan:

Contribution to defined contribution plan, recognized as expenses for the year are as under:

Employer’s Contribution to Provident/Pension Fund - Rs. 2194012/-

The Company contributes applicable rates of salary of all eligible employees towards Provident Fund managed by the Central Government.

Leave Encashment: -

The Company has provided a sum of Rs. 625487/- towards Leave encashment based on actuarial valuation.

1.3 Balance in Advances, Deposits, Unsecured loans, other Liabilities, Trade Receivables, Trade Payables and advances against suppliers are subject to confirmation by respective parties.

1.4 Fixed Assets includes land for which Registration formalities are yet to be completed.

2. Investment includes Rs 82542475/- (Previous Year Rs.70,000,000/-) in Shares of Deccan Remedies Limited for the Company's expansion plans.

3. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

4. In accordance with the Accounting Standards (AS-28) on "Impairment of Assets" the management during the year carried out exercise of identifying the assets that may have been impaired in respect of each cash generating unit. On the basis of this review carried out by the management there was no impairment loss on the fixed assets during the year ended 31st March, 2023.

5. Investment Subsidy received from Andhra Pradesh Government is shown under Other Equity.

41. Capital management

The Company's policy is to maintain strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of business.

The Company manages its Capital structure through a balanced mix of debt and equity.

The Company's capital structure is influenced by the changes in the regulatory frameworks, government policies, available options of financing and impact of the same on liquidity position.

The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The table below shows the Gearing ratio for FY 2022-23 and FY 2021-22.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

43. Fair values hierarchy

Financial assets and liabilities measured at fair value in the statement of financial position are grouped into three levels of fair value hierarchy. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for the financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using the valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

The following table provides the fair value measurement hierarchy of the Company's assets and liabilities: Quantitative disclosures fair value measurement hierarchy for assets as at March 31, 2023:

44. Financial risk management objectives and policies

The Company is exposed to financial risk such as Market Risk (Interest Rate Risk, fluctuation in foreign exchange rates and price risk), credit risk and liquidity risk. The general risk management program of the Company focuses on the unpredictability of the financial markets and attempts to minimize their potential negative influence on the financial performance of the Company. The Company continuously reviews its risk exposures and takes measures to limit it to acceptable levels. The Board of Directors have the overall responsibility for the establishment and oversight of the Company's risk management framework.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk, foreign currency risk and other price risk. Financial instruments of the Company affected by market risk include borrowings and deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022.

The analysis exclude the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2023 and March 31,2022.

Interest Rate Risk

The interest rate risk arise from long term borrowing of the company with variable interest rates (Bank one year MCLR plus spread). Although the spread is fixed, it is subject to change at fixed time interval or occurrence of specified event(s). Management monitors the movement in interest rate and, wherever possible, reacts to material movements in such rates by restructuring its financing arrangement.

Current Assets = Inventories, Trade receivables. Cash & Cash Equivalents,Banl< Balance other than Cash and Cash Equivalents, Loans and advances to employees, "Advances to Contractors,Supplies", Advances recoverable cash or in kind. Prepaid Expenses, CST credit receivable,Balances with Central Excise Deptt, Meis claim receivable. Accrued interest.

Current Liabilities - Borrowings,Trade Payable,Creditors for Capital Goods,Advances from Customers, other liabilities.Provision for leave encashment,Current Tax Liabilities

Total Liabilities - Borrowings,Trade Payable,Creditors for Capital Goods,Advances from Customers, other liabilities. Provision for leave encashment,Current Tax Liabilities,Other financial liabilities. Deferred Tax Liabilities (Net)

Total Shareholder’s Equity = Equity Share Capital,Other Equity (Share Premium,Investment Subsidy,

General Reserve,Capital Reserve(Forfit of Warrant),Retained Profit on Property,plant and equipment (net of deferred tax),Balance in Profit & Loss

Total Shareholder’s Equity = Equity Share Capital,Other Equity (Share Premium,Investment Subsidy, General Reserve,Capital Reserve(Forfit of Warrant),Retained Profit on Property,plant and equipment (net of deferred tax),Balance in Profit & Loss

Revenue = Sale of Products,Interstate Sales-Scrap,Interest lncome,Sundry Balancess written off/back,Profit on sale of fixed assets, Exchange rate fluctuation, Duty Draw Back

Cost = Cost ofMaterial Consumed, "changes in inventories of finished goods,Stock-in-tradeand work-in-progress".

Employees Benefits Expenses,Finance Cost,Depreciation expenses, Pollution control expenses,Consultancy & legal expense, Rent & Facilities, Electricity charges,security Charges, Printing & Stationery, Communication expnnse, Insurance, Travelling & Conveyance Expenses,Selling Expenses, Carriage Outwards, Audit Fees, Tax Audit Fees, Certification & Others,Vehicle Maintenance, Miscellaneous Expenses, Sundry balances written off, Stores, Spares & others, Packing Material, Power & Fuels, Repair & Maintenance-Buildings, Repair &Maintenance-Plant& Machinery, Repair & Maintenance-Others, Job Work Charges

Price risk

Price risk is the risk of fluctuations in the change in prices of equity Investments. The Company's investment in JV company is of strategic in nature rather than for trading purpose.

Credit risk

Credit risk is the risk arising from credit exposure to customers and the counterparty will default on its contractual obligations.

The Company has adopted a policy of only dealing with creditworthy customers/ corporates to minimise collection losses. Credit Control team assesses the credit quality of the customers, their financial position, past experience in payments and other relevant factors. Advance payments are obtained from customers in banquets, as a means of mitigating the risk of financial loss from defaults.

The carrying amount of trade and other receivables, advances to suppliers, cash and short- term deposits and interest receivable on deposits represents company's maximum exposure to the credit risk. No other financial asset carry a significant exposure with respect to the credit risk. Deposits and cash balances are placed with Schedule Commercial banks.

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company also holds advances as security from customers to mitigate credit risk.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with the Company's policy. Investments held by the Company are in the nature of investment in jointly controlled entity and also an investment in an alternate energy supply company as required under the respective State energy policy. Both the categories are unquoted non-trade equity.

Liquidity risk

Liquidity risk is the risk that the Company will have difficulty in raising the financial resources required to fulfil its commitments.

Liquidity risk is held at low levels through effective cash flow management. Cash flow forecasting is performed internally by rolling forecasts of the Company's liquidity requirements to ensure that it has sufficient cash to meet operational requirements, to fund scheduled capex and debt repayments and to comply with the terms of financing documents.

The Company primarily uses short-term bank facilities in the nature of bank overdraft facility to fund its ongoing working capital requirements.