(b) Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of '2 per share. Each shareholder is eligible for one vote per share held. The Company declares and pays dividends in Indian rupees.

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.

Nature and purpose of reserves:

(i) Capital reserve

Capital reserve represents voluntary non-repayable grant from AstraZeneca Pharmaceutical AB, Sweden to the Company during the financial year 2013-14. Consequent to subvention agreement dated May 7, 2013 between the Company and AstraZeneca Pharmaceutical AB (‘the Promoter Company’), the promoter company had provided a voluntary non-repayable financial grant in order to assist the Company in its efforts to establish presence and grow in the Indian market.

(ii) General reserve

General reserve represents appropriation of profits from retained earnings.

(iii) Employee stock compensation reserve

The employee stock compensation reserve is used to recognise the grant date fair value of restricted stock units issued to employees under ultimate holding company’s long-term incentive stock compensation plan.

(iv) Retained earnings

Retained earnings comprises prior and current year’s undistributed earnings after tax.

(a) Provision for indirect tax matters is created in respect of likely adverse outcome of indirect tax cases pending against the Company.

(b) The Company had received a notice from Bruhat Bangalore Mahanagara Palike (BBMP) on August 7, 2014, followed by reminder notices, demanding ' 70.8 (2024: ' 70.8) as improvement charges for its factory land. The Company had filed a writ petition with the Honourable High Court of Karnataka (‘Court’) challenging the levy. The Court had granted an interim order of stay on the said demand notice. During the year, this Writ petition has been dismissed, the Company has filed an appeal in the High Court of Karnataka and this matter is pending to be heard.

(c) Provision for other obligation includes ' 71.0 (2024: ' 42.1) pertaining to demand from National Pharmaceutical Pricing Authority (‘NPPA’) alleging overcharging for certain drugs. The Company’s representation on the said matter is pending with NPPA.

Management, as a prudent accounting practice has provided in respect of aforesaid matters. These provisions are based on management’s estimate of probable outflow on account of settlement after considering advice obtained from external consultants or legal advisors, where considered necessary. The Company intends to pursue the necessary legal recourse, if required, in these matters. Management cannot estimate with certainty the timing of the final outcome.

(d) This relates to provision made towards closure of the manufacturing site amounting to '600.0. Also refer note 27B(i)(a).

(e) Provision for other obligations also includes costs towards closure of its manufacturing site amounting to '13.2. Also refer notes 27B(i)(a).

iii) Transfer Pricing

The Finance Act, 2001, introduced, with effect from Assessment Year 2002-03 (effective April 1, 2001), detailed Transfer Pricing Regulations (the regulations) for computing the taxable income and expenditure from “international transactions” between “associate enterprises” on an “arm’s length” basis. The regulations, inter alia, also require the maintenance of prescribed documentation and information, including furnishing a report from an Accountant before the due date of filing the Return of Income.

For the year ended March 31, 2025, the Company will obtain the prescribed certificate from the Independent Accountant, as required by the regulations for all international transactions, and further, shall take necessary steps including maintaining a study for the international transactions. In this regard, based on the analysis of margins for the year ended March 31, 2025, the Company is of the view that, the transactions with the said enterprises are on arm’s length basis.

Note:

The Company has received '120.0 for compensation of potential loss of revenue pursuant to a settlement by a third party arising from a legal dispute relating to patents owned by a Company within AstraZeneca Group. Out of such amounts, '86.1 is shown as Miscellaneous Income by the Company and the remaining '33.9 is required to be paid to another third party under an arrangement entered into by this party with another Company within AstraZeneca group. Such amounts payable to the said third party is disclosed under Note 16 and included under ‘Other Payable’.

(a) Represents charge in respect of Restricted Stock Units issued by AstraZeneca Pic, United Kingdom “the ultimate holding company” to qualifying employees of the Company [Refer note 36].

(b) Employee benefit expenses shown above is net of reimbursable expenses recovered from related parties under appropriate line items [Refer note 33].

27B Exceptional items:

(i) (a)During the previous year, the Company had made an announcement to Stock exchanges about its intention to exit the Company’s manufacturing site in Bangalore in due course of time. The Company had subsequently started exploring the option to sell the manufacturing site in a fully operational manner to a Contract Manufacturing Organization (CMO). However, on June 21, 2024, the Board resolved that the Company would instead, explore to find a suitable buyer for its manufacturing site and exit in due course. The operations at the manufacturing site is continuing as at March 31, 2025 and is expected to cease during the financial year 2025-26.The Company has estimated and accounted for expense amounting to '636.4 (2024: Nil) in relation to the closure of manufacturing site, in accordance with the relevant Indian accounting standards. Such expenses have been presented as an exceptional item in the Statement of Profit and Loss.

(i) (b)Exceptional items for the year also consists of employee separation cost amounting to ' 331.5 (2024: Nil) for

restructuring of Biopharmaceuticals Business Unit in line with strategy of the Company to become a specialist focussed organisation, bring innovative medicines faster and transform patient outcome.

(ii) The Company had entered into an Advance Pricing Agreement with Central Board of Direct Taxation for financial years 2015- 2016 to 2019-2020 for which there were certain previously disclosed disputed Transfer Pricing matters consequent to which an amount of ' 164.3 was included as Exceptional income during the year ended March 31, 2024.

(c) During the current year, a comprehensive analysis of the clinical trial studies was undertaken by the management in context of Company's specialist strategy, new launches, need of clinical studies and ageing of the accruals etc. Accordingly, clinical trial expenses for the year are adjusted for reversal of accruals aggregating to '194.6. The Company continues to invest in clinical trials and other real world studies for new launches and indications to generate scientific data.

The Company announced its decision to exit its manufacturing site and consequently, it is expected that operations at the manufacturing site will cease during the financial year 2025 - 26. Therefore, management has revised its estimate of the useful lives of the relevant property, plant and equipment and intangible assets. The impact on depreciation and amortisation due to this change in estimate amounting to ' 225 and ' 10 respectively has been accounted for in the Statement of Profit and Loss.

31 Segment reporting

The Company is engaged in the business of manufacture, distribution and marketing of pharmaceutical products and provides clinical trial services to an overseas group company.The Chief Operating Decision Maker (CODM) reviews the Company level data for resource allocation and assessment of the Company’s performance. As the Company’s activities fall within a single business segment, separate segment wise disclosures are not applicable.

The Company’s CODM for the purpose of resource allocation and assessment of Company’s performance reviews the Company level data and hence, the Company has considered the above business as a single reportable segment. The additional disclosures as required by IND AS 108 are as below:

Indirect tax matters are related to demands (including interest and penalties, where applicable) raised by the Indirect tax authorities related to service tax and goods and services tax (GST).

The demands relating to service tax have been raised on expenses incurred in foreign currency, reimbursements from overseas group companies, recovery of notice period pay from former employees and ineligible input tax credit claimed on certain expenses. The GST demand pertains to certain category of medicines supplied by the Company as part of the Patient Assistance Programs and transfer of Input tax credits from service tax regime to GST regime. The Company has filed appeals before the relevant authorities against the above demands, which are pending for adjudication.

The Company believes that it has a strong case on merits to contest the aforesaid demands and that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position and results of operations.

# Income tax matters:

Income tax matters are related to demands (including interest, where applicable) raised by the Income tax authorities in respect of transfer pricing adjustments on transactions with overseas group companies, disallowance of certain expenses incurred and certain other disallowances. These adjustments are largely of a repetitive nature across multiple assessment years. The Company has filed appeals against these demands with various appellate forums, which are currently pending for adjudication.

The Company believes that its position on the aforesaid demands will likely be upheld in the appellate process and accordingly no provision has been made in the financial statements for such demands.

(ii) During the year ended March 31, 2022, the Company had received a demand notice for an amount of '1,573.9 million (and interest thereupon) under Trade Margin Rationalisation notification (“TMR notification”) from NPPA alleging overcharging of a patented anti-cancer drug sold during the period of March 8, 2019 to January 31, 2021. The said drug has been included by NPPA with certain other anti-cancer medicines, on which trade margin caps are applicable under TMR notification. Based on evaluation, Management is of the view that the TMR notification is not applicable to the aforesaid patented drug and all applicable laws relating to the pricing of the product have been complied with. The Company has filed a Writ Petition before The Honorable High Court of Delhi challenging the NPPA’s demand notice and the matter is pending adjudication. Based on assessment, supported by external legal advice, Management has concluded that it has a strong case and the Company can defend its position. Accordingly, no provision has been made in these financial statements.

Note: It is not practical for the Company to estimate the timing of cash outflows, if any, in respect of the above matters, pending resolution of respective proceedings. The Company does not expect any reimbursement in respect of above matters.

Extension and termination options

Extension and termination options are included in various leasing arrangements for buildings. These are used to maximise operational flexibility in terms of managing assets used in the operations. All the extension and termination options are exercisable only by the Company.

The Company has not provided any residual value guarantees in any of the leasing arrangements.

35 Employee benefits

(i) Defined contribution plans (Refer note 27A)

The Company contributes to defined contribution plans such as provident fund, superannuation and other funds as mentioned below as required by statute or Company policy.

(ii) Compensated absence

The leave obligation covers the Company’s liability for earned leave and sick leave granted to the employees. This is an unfunded scheme.

The amount of the provision of ' 239.8 (2024: ' 246.0) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Company does not expect all employees to avail the full amount of accrued leave or require payment within the next 12 months. The non-current portion of provision, included in the total provision for compensated absences is ' 178.9 (2024: ' 205.9) as per actuarial report.

For Non-Management staff: 15 days salary for each year of service, subject to maximum limit specified as per The Payment of Gratuity (Amendment) Act, 2018.

Payable on retirement, death or disability:

For Management staff: One month’s salary last drawn by member for each year of service, without limit.

For Non-Management staff: One month’s salary last drawn by member for each year of service, subject to maximum limit specified as per The Payment of Gratuity (Amendment) Act,2018.

Benefits payable for employees who have joined on or after August 1, 2014:

Gratuity is payable in accordance with the provisions of The Payment of Gratuity (Amendment) Act, 2018.

(B) Provident fund (Defined benefit plan):

The Company operates a defined benefit plan for Provident fund for management staff. The minimum statutory rate at which the annual rate of interest is payable to the beneficiaries of such plan is administered by the Central Government. The Company is obligated to make good the shortfall in statutory rate prescribed by the Government and rate of interest declared by the trust. The Company also has an obligation to fund any shortfall in the fair value of plan assets as compared with the defined benefit obligation.

i) Actuarial risk and sensitivity

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary 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 plan assets underperform this yield, this will create a deficit. The Company maintains plan asset for Gratuity through insurance company and for Provident fund is managed through trust.

Interest risk A decrease in the bond interest rate will increase the plan liability.

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.

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.

The Company ensures that the investment positions are managed within the asset-liability matching framework that has been developed to achieve long-term investments that are in line with the obligations under employee benefit plans. Within this framework, the Company’s asset-liability matching objective is to match assets to the defined benefit obligations by investing in plan asset managed by an insurance company and through the Provident Fund trust.

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.

36 Employees Restricted Stock Plan

The Ultimate Holding Company, AstraZeneca Pic. United Kingdom (AZUK), listed on London Stock Exchange had introduced a Long-Term Incentive Stock Compensation Plan in the form of Restricted Stock Units (RSUs) to attract and retain the employees. As per the plan, the awards are granted to qualifying management employees of the Company. One restricted stock unit represents one AZUK share. When the stock units vests after three years, restricted stock units are automatically exchanged for the same number of AZUK shares. Moreover, the RSUs do not expire. There is no performance criteria. After the vesting period, the employees are free to either hold or sell the shares.

Fair value of RSUs granted

The fair values were determined using a modified version of the binomial model. This method incorporated expected dividends but no other features into the measurements of fair value. The grant date fair values of share awards does not take into account service and non-market related performance conditions.

37 Financial instruments- accounting classification and fair value measurement

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

The management assessed that carrying amount of cash and cash equivalents, trade receivables, trade payables and other current financial assets and liabilities approximate their fair values largely due to the short-term maturities of these instruments.

In respect of other financial assets, the difference between the carrying amounts and fair value is not expected to be material. 38 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include loans, trade and other receivables, cash and cash equivalents and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.

i. Market risk Foreign Currency Exposure

Foreign currency risk is the risk that the future cash flows of a financial asset or a financial liability will fluctuate because of changes in foreign exchange rates. The operations of the Company are carried out mainly in India. However, the Company exports services to foreign customers and receives certain services from foreign vendors which are denominated in USD, GBP, EUR and AUD. Hence the Company is currently exposed to the currency risk arising from fluctuations in the exchange rates between the above currencies and Indian rupee. The Company does not enter into any forward contracts considering the total exposure is not material to the operations of the Company. Foreign currency exposure which was not hedged, are as follows:

The Company is not subject to any other market risk.

ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities primarily with respect to trade receivables, including balances with banks and other financial assets.

a. Trade Receivables

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on credit rating scorecard and individual credit limits are defined in accordance with this assessment. To manage this, the company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of account receivable. The terms of payment with the customers are less than 12 months and hence there is no significant financing component.

An impairment analysis is performed at each reporting date on an individual basis for third party receivables. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables, Refer note 10.

The ageing analysis of the receivables (gross of provision) has been considered from the date the invoice.

b. Cash and Bank balances, other financial assets

Credit risk from balances with banks and other financial assets is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counter parties and within the limits assigned. Company follows a conservative philosophy and shall aim to invest surplus rupee funds in India only in time deposits with well-known and highly rated banks. The duration of such time deposits will not exceed 365 days other than margin money deposits. Management has evaluated and concluded that impact of credit losses on cash and bank balances and other financial assets is not likely to be material.

iii. 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 and to close out market positions. The Company maintains flexibility in funding by maintaining appropriate level of funds in bank and liquid deposits. Financial liabilities includes trade payables and other financial liabilities, the amount is repayable generally in a period of 3 months to 1 year.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

39 Capital management a. Risk management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves. The primary objective of the Company’s capital management is to maximise the shareholder value. The Company has not availed any borrowings and mainly funded through equity. The Company is subsidiary of AstraZeneca Pharmaceuticals AB, Sweden (Holding Company), the existing surplus funds along with the cash generated by the Company are sufficient to meet its current/non-current obligation and working capital requirements.

(ii) Revenue from sale of tablets, injectables and income from grant of exclusive distribution rights includes an amount of ' 370.0 (2024 : ' 398.0) which was classified as deferred revenue as at the end of previous year. Refer note 18.

(iii) Performance obligations and remaining performance obligations

Performance obligations of the Company to deliver goods are required to be satisfied within a period of 12 months or less. Accordingly, management has elected to use the practical expedient provided in Ind AS 115 and has not disclosed the transaction price of unsatisfied performance obligations as at the year end.

Sale of services:

In respect of clinical services and marketing support services, the Company is entitled to charge the customer an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, measured based on the actual costs incurred by the Company in providing clinical services and marketing support services. Considering the nature of the arrangement, management has used the practical expedient in Ind AS 115 and has not disclosed the transaction price of unsatisfied performance obligations in respect of clinical trial services and marketing support services as at the year end.

44 Additional regulatory information required by Schedule III

(i) Details of benami property held: The Company does not hold benami property. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Wilful defaulter: The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) The Company did not have any loans or other borrowings availed from banker or financial institutions during the current or previous year.

(iv) Compliance with number of layers of companies: The Company does not have any subsidiary company and hence provisions relating to layers perscribed under Companies Act, 2013 and Companies (Restriction on Number of Layers) Rules, 2017 (‘Layering Rules’) are not applicable to the Company.

(v) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vi) 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 group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(vii) 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.

(viii) There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(x) The Company has not revalued its Property, plant and equipment or intangible assets during the current or previous year.

(xi) The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3A to the financial statements, are held in the name of the Company.

(xii) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(xiii) Relationship with struck off companies: The Company does not have transactions or balances with struck off Companies under Companies Act, 2013 or Companies Act, 1956.

45 Provident Fund

The Company has evaluated the impact of The Honorable Supreme Court (“SC”) judgement dated February 28, 2019 in the case of Regional Provident Fund Commissioner (II) West Bengal v/s Vivekananda Vidyamandir and Others, in relation to exclusion of certain allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to Provident Fund (“PF”) under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952. There are interpretation issues relating to the said judgement. Based on such evaluation, management has concluded that affect of the aforesaid judgement on the Company is not material and accordingly, no provision has been made in the financial statements.

46 The Board of Directors, at its meeting dated May 30, 2025, have recommended a dividend of ' 32 (2024: '24) per equity share aggregating to ' 800 (2024: ' 600) which is subject to approval of shareholders at the ensuing Annual General Meeting.