i) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

MAT credit balance as on March 31,2022 amounts to ' 209 crore (Previous year - ' 216 crore). Based on existing contracts and future business prospects, it is probable that the said MAT credit and business loss will be availed in future years against the normal tax expected to be paid in those years.

ii) Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

iii) Given that the Company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognised. Further, the Company does not have any intention to dispose the land on an individual basis, hence deferred tax asset on the indexation benefit on land has not been recognised.

iv) Aggregate carried forward tax losses for which no deferred tax has been created amounted to ' 142 crore (Previous year - ' 142 crore). These tax losses are available for set off against future taxable profits over next 8 years.

The term loan of USD 10 million (Previous year - USD 30 million) amounting to ' 76 crore (Previous year - ' 219 crore) is secured by first charge on pari passu basis on fixed assets, present and future, located at all locations other than Plants at Kadaiya in Daman. This term loan carries interest rate of 6 months USD LIBOR plus 325 BPS p.a. and is repayable in 2 equal quarterly instalments by July 2022.

Note 16.2

The term loan of ' 50 crore (Previous year - ' 100 crore) from IDBI Bank is secured by first charge on pari passu basis on fixed assets, present and future, located at all locations other than Plants at Kadaiya in Daman. This term loan carries interest rate at Bank Base Rate plus 75 BPS p.a. and is repayable in 2 equal half yearly instalments by December 2022.

The term loan of ' 45 crore (Previous year - ' 95 crore) from Bank of Maharashtra ('BOM') is secured by first charge on pari passu basis on fixed assets, present and future, located at all locations other than Plants at Kadaiya in Daman. This term loan carries interest rate at One Year's MCLR plus 185 BPS p.a and is repayable in 3 quarterly instalments (along with interest pertaining to Covid Moratorium Period) by December 2022.

Further, the term loan of ' 90 crore (Previous year - ' 130 crore) from Bank of Baroda ('BOB') is secured by first charge on pari passu basis on fixed assets, present and future, located at all locations other than Plants at Kadaiya in Daman. This term loan carries interest rate at One Year's MCLR plus 110 BPS and is repayable in 9 equal quarterly instalments by June 2024.

Put/Call option:

Put/Call option for 5,000 debentures (alloted in October 2021) will vest on June 15, 2023, and each date falling at the expiry of 6 months thereafter. For the balance 20,000 debentures (alloted in April/May 2021), the Put/Call option will vest on December 15, 2022, and each date falling at the expiry of 6 months thereafter.

Further, the above Non- Convertible Debentures are secured against pledge of 173,75,000 equity shares of Company held by Themisto Trustee Company Private Limited which holds these shares in its capacity as the trustee of Habil Khorakiwala Trust which in turn holds these shares in its capacity as the partner of the partnership firm Humuza Consultants.

Note 16.4

Loans from GOI carry interest rate of 3% p.a. Loan amounting to ' 3 crore (Previous year - ' 3 crore) is repayable in equal annual instalments by March 2029. Loan amounting to ' 0.42 crore has been repaid in full in October 2021.

Working capital facilities from Banks are secured by way of:

(i) First charge on pari passu basis on present and future stock of raw materials, consumables, spares, semi-finished goods, finished goods, book debts and other current assets.

(ii) Second charge on pari passu basis on immovable properties and movable fixed assets, both present and future, located at all locations (other than plants at Kadaiya in Daman).

Note 18.2

Buyers' credit/ Supplier's Credit are secured by way of first pari passu charge on the entire current assets and second pari passu charge on all fixed assets located at all locations other than Plants at Kadaiya in Daman.

Note 18.3

Refer note 11 to 13 for carrying amount of current financial assets on which charge has been created.

Note 18.4

Loans from related parties carrying interest rate in the rate of 8.5% p.a to 11.75% p.a are repayable on demand and subject to rollover by mutual consent.

31. During the previous year ended March 31, 2021, the Company reassessed the commercial prospects of the Nutrition Business and decided not to pursue it in near future and therefore, the Nutrition Business assets were classified as assets held for disposal and an impairment loss of ' 142 crore has been recognised under the head 'Exceptional items - continuing operations'. Further the aforesaid business assets have been classified as 'Assets held for disposal' as disclosed in Note 4 and Note 40 amounting to ' 144 crore.

32. SEGMENT REPORTING

As the Company's annual report contains both Consolidated and Standalone Financial Statements, segmental information is presented only on the basis of Consolidated Financial Statement.

The weighted average incremental borrowing rate used for discounting is 10%.

Refer Note 27 for Interest on lease Liabilities.

Also refer Note 4 for details of Right-of-Use Assets and depreciation thereon.

The summary of practical expedients elected on initial application are as follows:

The Company has availed the exemption of not recognising right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

The Company's lease asset classes primarily consist of leases for land and buildings. The leases for land/buildings are generally for a period ranging 10 years to 99 years. These leases can be extended for further 10 years to 99 years by mutual consent. Office premises are generally for a period not exceeding five years and are in most cases renewable by mutual consent, on mutually agreeable terms. There are no restrictions imposed by lease arrangements or contingent rent payable. Certain portion of the land has been subleased.

In case of land that have been leased out for 95 years to 99 years, there are no material annual payments for the aforesaid leases.

Rental expenses on leases for a period of less than 12 months amounting to ' 0.10 crore (Previous year - ' 0.09 crore) and rent for low value assets amounting to ' 0.46 crore (Previous year - 1 crore) have been included under "Note 28 - Other expenses” under Rent.

Further, Refer Note 43 for maturity profile of lease liabilities.

37. EMPLOYEE BENEFITS

(A) Defined benefit plans:

Gratuity liability is provided in accordance with the provisions of the Payment of Gratuity Act, 1972 based on actuarial valuation. The plan provides a lump sum gratuity payment to eligible employee at retirement, termination of their employment or death of the Employee. The amounts are based on the respective employee's last drawn salary and the years of employment with the Company. The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. 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.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation as at balance sheet date from Continuing and Discontinued business:

Notes:

(a) Amount recognised as an expense in the Statement of Profit and Loss and included in Note 26 under Salaries and wages : Gratuity ' 4 Crore (Previous year - ' 5 crore) and Leave encashment ' 3 crore (Previous year - ' 3 crore).

(The above balances include balances pertaining to discontinued operations : Gratuity ' Nil (Previous year- ' 0.44 crore; Leave encashment ' Nil (Previous year - ' 1 crore)

(b) The estimates of future salary increases considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

(c) The plan above is typically exposed to actuarial risk such as Mortality risk, withdrawal rate risk and salary risk

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

- Withdrawal rate risk: The plan faces the withdrawal rate risk. If the actual withdrawal rate is higher, the benefits would be paid earlier than expected.

- Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

(B) Defined contribution plan:

The Company makes contributions towards provident fund and superannuation fund which are in the nature of defined contribution post employment benefit plans. Under the plan, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.

38. SHARE BASED PAYMENTS TO EMPLOYEES

ESOS Compensation Committee of the Board of Directors has, under Wockhardt Stock Option Scheme -2011 ('the Scheme' or 'ESOS') granted 60,000 options @ ' 397/- per option (Grant 1), another 60,000 options @ ' 365/- per option (Grant 2), 1,420,000 options @ ' 5/- per option (Grant 3), 350,000 options @ ' 5/- per option (Grant 4), 8,500 options @ ' 5/- per option (Grant 5), 200,000 options @ ' 5/- per option (Grant 6), 223,500 options @ ' 5/- per option (Grant 7) 76,000 options @ ' 5/- per option (Grant 8), and 90,750 options @ ' 5/- per option (Grant 9) in accordance with the provisions of Securities and Exchange Board of India (Share based Employee Benefits) Regulations, 2014, to the selected employees of the Company and its subsidiaries. The method of settlement is by issue of equity shares to the selected employees who have exercised the options. The scheme shall be administered by ESOS compensation committee of Board of directors.

The options issued vests in periods ranging 11 months to 7 years 6 months from the date of grant, and can be exercised during such period not exceeding 7 years.

The working of stock prices has been done by taking historical price movement of the closing prices which includes change in price due to dividend, hence dividend is not factored separately. Volatility is based on the movement of stock price on NSE based on the price data for last 12 months upto the grant date.

39. REVENUE:

(a) As per Ind AS 115 "Revenue from Contracts with Customers” the Company has classified its Revenue as:

- Sale of products and services: Revenue is recognised when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control over the promised goods and/or services to the customer. This transfer of control is generally at a point of time of shipment to or receipt of products by the customer or when the services are performed. The amount of revenue to be recognised is based on the consideration the Company expects to receive in exchange for its goods/ services. If the contract contains more than one obligation, the consideration is allocated based on the standalone selling price of each performance obligation.

Rebates, discounts, commissions and bonuses (including cash discounts offered to customers for prompt payment) are provisioned and recorded as deduction from revenue at the time the related revenue is recorded. These rebates are calculated based on the historical experience and the specific terms in individual agreements. Sales returns are recognised and recorded as deductions based on historical experience of customer returns. and such other relevant factors.

- Sale of intellectual property, Assignment of New Chemical Entity, Sale of Trademarks and Outlicensing fees: Revenue is recognised when a contractual promise to a customer (performance obligation) has been fulfilled by transferring control to the customer taking into consideration the specific terms of the agreement and when the risk of reversal of revenue recognition is remote.

There is no significant financial component as the credit period provided by the Company is not significant.

Variable components such as discounts, sales return etc. continue to be recognised as deduction from revenue in compliance with

Ind AS 115.

40. DISCONTINUED OPERATIONS AND ASSET HELD FOR SALE:

During previous year, the Board of Directors, in their meeting held on June 09, 2020, concluded the Business transfer agreement ("BTA”) entered into between the Company and Dr. Reddy's Laboratories Limited ("Purchaser”) dated February 12, 2020 read with amendments made time to time for the transfer of the business comprising 62 products and line extensions along with related assets and liabilities, contracts, permits, intellectual properties, employees, marketing, sales and distribution of the same in the Domestic Branded Division in India, Nepal, Bhutan, Sri Lanka and Maldives, and the manufacturing facility at Baddi, Himachal Pradesh, where some of the products which are being transferred were manufactured (together the "Business Undertaking”), to the Purchaser. The consideration for the above said transfer of Business Undertaking for ' 1,850 crore was structured as per following:

a) an amount equal to ' 1,550 crore (including a deposit of ' 67 crore in escrow account towards adjustments for, inter alia, Net working capital, employee liabilities and certain other contractual and statutory liabilities) to be paid on the Closing Date under the BTA. The said amount has been paid by the Purchaser to the Company during the year ended March 31, 2021 including release of ' 63 crore out of the original escrow account of ' 67 crore and,

b) balance amount equal to ' 300 crore out of total consideration of ' 1,850 crore has been held back ("Holdback Amount”), by the Purchaser on the Closing Date (i.e., June 09, 2020) for assessment of the impact of the COVID-19 pandemic on the Business Undertaking and shall be released as equal to 2 (two) times the amount by which the revenue exceeds ' 480 crore from sales of the products forming part of the said Business Undertaking by the Purchaser during the 12 months post-closing date.

The profit from aforesaid Transfer of Business Undertaking (excluding the Holdback Amount of ' 300 crore) amounting to ' 1,470 crore has been shown as ' Exceptional Items - discontinued operations' during previous year ended March 31, 2021.

The Company and Purchaser, in accordance with the BTA, are in the process of determining the value of the Holdback Amount receivable, if any, by the Company. Pending determination of such amount between the parties, no gain has been recognised in the Profit and Loss account during the year ended March 31, 2022.

B. Measurement of fair values:

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

- The fair values of the loans taken from banks and other parties is estimated by discounting cash flows using rates currently available for debt/instruments on similar terms, credit risks and remaining maturities. Management regularly assesses a range of reasonably possible alternatives for those significant observable inputs and determines their impact on the total fair value.

- The change in the unobservable inputs for unquoted investments of Narmada Clean Tech Limited (formerly known as Bharuch Eco-Aqua Infrastructure Limited) and Bharuch Enviro Infrastructure Limited instruments does not have a significant impact in its value.

43. FINANCIAL RISK MANAGEMENT

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

• Credit risk;

• Liquidity risk; and

• Market risk

Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

The Company's Risk Management Framework encompasses practices relating to the identification, analysis, evaluation, treatment, mitigation and monitoring of the strategic, external and operational controls risks in achieving key business objectives.

The Company has laid down the procedure for risk assessment and their mitigation through a Risk management Committee comprising Executive Director, Managing Director, Independent Director and Chief Financial Officer as its members. Key risks and their mitigation arising out of periodic reviews by the Committee are assessed and reported to the Board of Directors, on a periodic basis.

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 policies and procedures.

The Company has a co-sourced model of independent Internal Audit and assurance function. There is a practice of reviewing various key select risks and report to Audit Committee from time to time. The co-sourced internal audit function carry out internal audit reviews in accordance with the approved internal audit plan and reviews the status of implementation of internal audit and assurance recommendations. Summary of Critical observations, if any, and recommendations under implementation are reported to the Audit Committee.

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 and investment securities. 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 and expected losses in respect of trade and other receivables and investments.

Trade and other 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.

As at March 31, 2022 and March 31,2021, the Company did not have any significant concentration of credit risk with any external customers except Wockhardt Bio AG that accounts for 76% of total trade receivables during current year (Previous year: 75%)

Expected credit loss assessment for customers as at March 31,2022 and March 31,2021:

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, available information etc.) and applying experienced credit judgement.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Given that the macro economic 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 movement in the allowance for impairment in respect of trade and other receivables during the year was as follows.

The Management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.

Cash and bank balances

The Company held cash and bank balances of ' 207 crore (Previous year - ' 138 crore). These balances are held with bank and financial institution counterparties with good credit rating.

Others

Other than trade receivables reported above, the Company has no other financial assets that is past due but not impaired.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to meet its liabilities. The Company monitors the net liquidity position through forecasts on the basis of expected cash flows.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to funds from debt markets to manage shortfall of current assets to current liabilities. The Company invests its surplus funds in bank fixed deposit. Considering this access and ongoing business contract, Company is confident of meeting its liability as and when they are due.

The following are the remaining contractual maturities of financial liabilities and financial assets at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Also issued financial guarantee of ' 2,193 crore (Outstanding Guarantee amount- ' 548 crore) for loan taken by its subsidiary which is repayable by March 2022 **

* I t includes contractual interest payment over the tenure of the Borrowings. These floating-interest Borrowings are based on interest rate prevailing as at the reporting date.

** Guarantees issued by the Company on behalf of subsidiaries are with respect to borrowings raised by the subsidiary. These amounts will be payable on default by the concerned subsidiary. The subsidiary has repaid the entire loan and is in the process of receipt of 'No Dues certificate' from the lenders

iii. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and other prices such as equity price. These 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. Financial instruments affected by market risk include loans, borrowings and deposits. The Market risk the Company is exposed can be classified as Currency risk and Interest rate risk.

(a) Currency risk:

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the Company is Indian Rupee. The Foreign currency exchange rate exposure is partly balanced by foreign exchange contracts and through natural hedge. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

The Company also enters into derivative contracts in order to hedge and manage its foreign currency exposures towards future loan repayment. The Company has not entered into any derivative contracts during the current and previous year.

The Company has received Advance for Supply of Goods from Wockhardt Bio AG, a majorly held foreign subsidiary of the Company {as on March 31, 2022 USD 88 million (' 487 crore) [Previous year - USD 88 million (' 484 crore) was outstanding}. In accordance with the direction of Reserve Bank of India (RBI) / Authorised Dealer (AD) Bank, such advance was supposed to be adjusted against Supply of goods by December 31, 2020. The advance amount received by the Company is accounted for only at the historical transaction exchange rate in accordance with the Ind AS 21.

The Company, as part of normal business has also been providing services including but not limited to R&D services and assignment of rights over its new chemical entities (NCE) to the aforesaid foreign subsidiary and as on March 31, 2022, USD 120 million (' 913 crore) [Previous year - USD 91 million (' 667 crore ) is outstanding receivables towards the same, of which USD 74 million (' 564 crore) is outstanding for more than the prescribed period as per the master circulars issued by the Reserve Bank of India (RBI).

Since the Advance received as mentioned above can not be adjusted against the outstanding receivables, the Company has time to time (including as in June 2020) approached to RBI/ concerned Authorized Dealer (AD) for approval of adjustment of these receivables with the advance received from the said foreign subsidiary. The decision in this regard is yet awaited from RBI/AD.

As the Company has been submitting requisite disclosures to RBI/ AD as required under relevant statute(s) for the above, in its opinion it is in compliance with applicable regulations. Any decision for the aforesaid adjustment will depend on RBI/ AD's final decision/ approval of the matter which is presently awaited.

Pending receipt of this approval, these balances are reported gross in the balance sheet and the receivables are restated at year end exchange rate, whereas the advance for supply of goods is accounted at the historical transaction exchange rate in accordance with the requirements of Ind AS 21. On receipt of the RBI approval, Company may need to recognise foreign exchange translation loss on the advance of USD 88 million depending on the then prevailing exchange rate.

b) 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 instruments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing instruments will fluctuate because of fluctuations in the interest rates.

44. CAPITAL MANAGEMENT

The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual and long-term strategic plans. The Company's policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of 'adjusted net debt' to 'adjusted equity'. For this purpose adjusted net debt is defined as total liabilities comprising interest bearing loans and borrowings excluding lease liabilities under Ind AS 116, less cash and cash equivalents, Bank balance and current investments. Adjusted equity comprises Total equity.

A) Contingent Liabilities (Claims not acknowledged as debts) and commitments (to the extent not provided for)

(a) Demand by Income tax authorities ' 413 crore (Previous year - ' 310 crore) disputed by the Company.

(b) Demands by Central Excise authorities in respect of Classification/ Valuation/ Cenvat Credit related disputes; stay orders have been obtained by the Company in case of demands ' 45 crore (Previous year - ' 45 crore).⁽¹⁾

(c) Demand by Sales Tax (including GST) authorities ' 95 crore (Previous year - ' 90 crore) disputed by the Company.¹¹¹

(d) Demand by Service tax authorities in respect of non-payment of Service Tax on Import of certain services disputed by the

Company ' 1 crore (Previous year - ' 1 crore).⁽¹⁾

(e) Demand by Municipal Corporation, Local body Tax on inputs used for manufacture of exported goods ' 3 crore (Previous year - 2 crore)

(f) Differential custom duty for misclassification/ penalty disputed by the Company ' 1 crore (Previous year - 1 crore)

(g) Differential MEIS for misclassification disputed by the Company ' 9 crore.

(h) Other matters:

- electricity expense ' 8 crore (Previous year - ' 8 crore)

- remediation against the pollution of ground water ' 1 crore (Previous year - ' 1 crore)

- environmental compensation against non-compliance of water/air pollution measures ' 2 crore (Previous year - ' 2 crore)

(i) Demand from National Pharmaceutical Pricing Authority (NPPA) in respect of overcharging of certain products disputed by the Company ' 96 crore (Previous year - ' 81 crore).

(j) Pursuant to a settlement agreement entered with the State of Texas on February 8, 2022 in regards to Civil Investigative Demand ('CID') with respect to submission of price information and updates to Texas Medicaid programme in US, Wockhardt USA LLC (WUSA) and the Company have agreed to pay USD 36 million and interest over nine instalments between 2022 and 2025 for the aforesaid matter relating to WUSA and Morton Grove Pharmaceuticals.

WUSA has made provision of ' 51 crores in the previous year ended March 31, 2021. During the year ended March 31, 2022 WUSA has created additional provision and presented ' 183 crores (charge for the year) based on its present value as an 'Exceptional Items- Continuing operations'.

Further ' 22 crore (USD 3 mn) has been paid by WUSA during the current year.

(k) The Company is involved in other disputes, lawsuits, claims, inquiries and proceedings including commercial matters that arise from time to time in the ordinary course of business. The Company believes that there are no such pending matters that are expected to have any material adverse effect on its financial statements in any given accounting period.

(l) Estimated amount of contracts remaining to be executed on capital account and not provided for ' 25 crore (Previous year -' 29 crore) after deducting advance on capital account of ' 8 crore (Previous year - ' 8 crore).

B) Corporate Guarantee

The Company has given a corporate guarantee on behalf of its subsidiary Wockhardt Bio AG for the USD loan that has been repaid fully during the year [Previous year - USD 63 million ('457 crore)].

This loan was secured as under:

(i) First ranking charge on fixed assets (excluding Intangible assets) and current assets of Wockhardt Bio AG and its subsidiaries (excluding assets of Wockpharma Ireland Limited and its Subsidiaries and Wockhardt France (Holdings) S.A.S. and its Subsidiaries)

(ii) First ranking charge on fixed assets of Wockhardt Limited situated at Kadaiya in Daman and on Fixed Deposits of ' 45 crore (excluding interest) in India.

The process of release of securities shall commence after receipt of 'No Dues Certificate' from all the lenders.

48. a) Certain manufacturing facilities, having net book value of ' 455 crore (Previous year - ' 186 crore) and capital work-in-progress amounting to ' Nil (Previous year - ' 286 crore), of the Company are having low utilisation of assets and the Company is evaluating various alternate purposes of these assets. The Company is also working on remediation of some plants.

b) (i) 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

c) The Company's 'New Chemical Entity' (NCE) research programme continued to progress in their clinical trials during the financial year 2021-22. Development expenditure incurred during the year ' 11 crore has been capitalised and included under Intangible assets under Development as at March 31, 2022.

Note : The above ratios are calculated on basis of continuing operations figures.

(1) Total debt = Non- current Borrowings Current Borrowings

(2) Earnings available for debt service = Net Loss after tax depreciation and other amortizations and other Non-cash operating expenses Interest (Finance cost); Debt Service = Interest and Lease payments Principal Repayments made during the period for long term loans

(3) Cost of goods sold = Cost of materials consumed Purchase of Stock-in-Trade Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(4) Working capital = Current asset - Current liability

(5) Capital Employed = Tangible Net Worth * Total Debt

(6) Cost of Investment = Total equity - Other comprehensive income

* Tangible net worth = Total equity - Intangible asset - Intangible asset under development

Reasons for more than 25% increase/(decrease):

a) Debt Equity ratio has decreased mainly due to increase in equity on account of issuance of equity on right basis during the year

b) Debt Service Coverage Ratio has increased mainly due to decrease in loss

c) Return on equity, Net capital turnover ratio, Net profit ratio, Return on capital employed and Return on investments have improved mainly due to decrease in loss/increase in turnover.

50. There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

51. Previous year figures have been regrouped wherever necessary to conform to current year classification.

52. The Company continues to monitor the impact of COVID-19 on it businesses across the globe, its customers, vendors, employees, productions, supply chain and logistics etc. The Company has exercised due care in significant accounting judgements and estimates in relation to recoverability of receivables, investments and inventories based on the information available to date, both internal and external, while preparing the Company's financial results for the current period.