4.1 Property, Plant and Equipment includes assets relating to Research and Development activities ( Refer note 41).

4.2 The title deeds of all immovable properties are held in the name of the Company.The Company has not revalued its property,plant and equipment during the year or in the previous year.

4.3 Refer note 49 for disclosure of contractual commitments for the acquisition of property, plant and equipment for an amount of H 4,424.65 lakhs (31^st March 2023 H 1,401.95 lakhs)

4.4 Refer note 40 for information on Property, Plant and Equipment pledged as security by the Company

The Company do not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

The Company has also taken office premises for lease in Vishakapatnam and the said lease is revocable by either of the parties with one month prior intimation. During the year, the company has paid lease rental of H2.24 lakhs (Previous Year H3.10 lakhs) and recognised the lease rentals on a straight line basis over the lease term.

The above lease is no longer enforceable as per Ind AS 116 because the both parties has the right to terminate the lease without significant penalty.Hence, disclosure requirement under Ind AS 116 "Leases” is not required.

5.1 Operating Lease Commitments - Company as Lessor :

The Company has given on Lease of its part premises in R & D Gagilapur for an amount of H0.67lakhs per month to an associate company . The company has also given for sub lease of part of its corporate office building to associate company. The Company has recognized income for total amount of H22.27 lakhs (Previous Year H21.66 lakhs) under the head of other income.

10.1 Capital Advances includes an amount of H81.64 lakhs paid to M/s Raghavendra Engineering Industries India Pvt Ltd who is a related party (Refer note. 46) .

10.2 An amount of H304.91 lakhs was included in the Capital Advances paid on account of land admeasuring AC 23.00 in JNPC, Parwada, Visakhapatnam District. The amount so paid is equivalent to 100% land cost to APIIC and about 80% of development cost to Ramky Pharmacity respectively. Due to the cancellation of part of land allotted to the company in earlier, the company has filed a Writ Petition before the Hon'ble High Court and the Court has granted stay which is pending.

11.1 Raw material includes imported raw material of stock in transit of Rs.857.66 lakhs (March 31,2023 Rs.155.68 lakhs )

11.2 Finished Goods includes stock in transit of Rs 671.53 lakhs (March 31, 2023 Rs 628.19 lakhs)

a) No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person.

b) Of the trade receivables balance, H13,786.87 in aggregate (as at March 31, 2023 H5,168.18) is due from the Company's customers individually representing more than 5 % of the total trade receivables balance.

c) During the reporting period the company has not provided doubtful debts by considering the track record of receivables and continued the existing provision on doubtful debts.

The Company has only one class of equity shares having face value of Re. 1 per share. 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. Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll, each share is entitled to one vote.

19.6 Nature and Purpose of Reserves

(a) Securities Premium Reserve:

Securities Premium Reserve is to record the premium on issue of shares. The reserve will be utilised in accordance with the provisions of the Companies Act 2013.

(b) Capital Redemption Reserve:

The Company has recognized Capital Redemption reserve on buy back of equity shares. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back. This reserve will be utilized in accordance with Section 69 of the Companies Act,2013.

(c) General Reserve:

General Reserves represent amounts transferred from retained earnings in earlier years under the provisions of the erstwhile Companies Act, 1956 and any voluntary transfers made from retained earnings under the Companies Act,2013.Mandatory transfer to general reserve is not required under the Companies Act,2013.

(d) Retained Earnings:

These are the accummulated earnings the company has earned till date ,less any tranfers to general reserve ,dividends or other transfers. The company uses retained earnings in accordance with the provisions of the Companies Act.

(e) Re-measurement Gain/(loss) of defined benefit obligations

These are the remeasurement gains/(losses) arising from the actuarial valuation of the defined benefit obligations of the company.

The re-measurement gains/(losses) are recognised in other comprehensive income and are not reclassified to profit or loss.

19.7 Share Warrants

During the year ended March 31,2024, the Board of Directors of the Company at their meeting held on February 08, 2024 approved for raising of funds through issue of Convertible Equity Share Warrants to the Promoters/Promoters Group by way of issuance upto 90,00,000 warrants convertible in one or more tranches to equity shares of Re.1/-each of the Company at an issue price of H127/-(including premium of H126/-)for each Warrant,aggregating to H11,430.00 Lakhs by way of preferential issue, which was subsequently approved by the members through special resolution in the Extra-Ordinary General Meeting dated March 06,2024.

Securities Allotment Committee of the Board of Directors of the Company held on March 19, 2024 have allotted 90,00,000 Convertible Warrants at an issue price of H 127/- each, which will be convertible into equity shares within a period of 18 months from the date of allotment. The Company has received H2857.50 lakhs being 25% of the total amount payable towards subscription of the warrants from all the allottees.

(a) Term Loans availed from IDBI Bank Limited (IDBI Bank), State Bank of India (SBI) and Export-Import Bank of India (Exim Bank) are secured by first charge on all movable and immovable fixed assets of the company both present and future on pari-passu basis. They are further secured by second charge on current assets both present and future on pari-passu basis. These facilities are guaranteed by Sri Ramesh Babu Potluri, Chairman & Managing Director and Sri Vamsi Krishna Potluri, Executive Director of the Company in their personal capacities.

(b) Long Term Working Capital Term Loans (LTWCTL) availed from Exim Bank are secured by first charge on all movable and immovable fixed assets of the company both present and future on pari-passu basis. Further secured by second charge on current assets of the Company both present and future on pari-passu basis. These facilities are guaranteed by Sri Ramesh Babu Potluri, Chairman & Managing Director of the Company in his personal capacity.

(c) Working Capital Term Loans (WCTL) under Guaranteed Emergency Credit Line (GECL) availed from IDBI Bank, RBL Bank Limited (RBL Bank), Exim Bank and SBI are secured by second charge on all movable and immovable fixed assets of the company both present and future on pari-passu basis . Further secured by second charge on current assets of the Company both present and future on pari-passu basis. These facilities are covered under GECL operated by National Credit Guarantee Trustee Company Limited (NCTC).

(d) Refer note 40 for the carrying amounts of financial and non-financial assets pledged as security for current and non -current borrowings.

(c) The loan availed from Exim Bank amounting to H6,500 lakhs for funding the Expansion Project of Kandivalasa unit. The loan is repayable in 24 Structured Quarterly Installments commencing from January, 2021, as mentioned below.

First 9 Quarters H 188.50 Lakhs each

Next 14 Quarters H 321.75 Lakhs each

Last 1 Quarter H 299.00 Lakhs each

(d) The loan availed from State Bank of India amounting to H5,000 lakhs for funding the Expansion Project of Kandivalasa unit. The loan is repayable in 24 Structured Quarterly Installments commencing from January, 2021, as mentioned below.

First 9 Quarters H 145.00 Lakhs each

Next 14 Quarters H 247.50 Lakhs each

Last 1 Quarter H 230.00 Lakhs each

(e) The WCTL under GECL availed from RBL Bank amounting H1,130 lakhs is to be repaid in 47 monthly equal principal

repayment of H23.54 Lakhs and 48^th monthly instalment of H23.62 lakhs after moratorium period of one year i.e.

April 2022 onwards.

(f) The WCTL under GECL-1 availed from IDBI Bank amounting H1,180 lakhs is to be repaid in 47 monthly equal principal

repayment of H24.60 Lakhs and 48^th monthly instalment of H23.80 lakhs after moratorium period of one year i.e.

March 2022 onwards.

(g) The WCTL under GECL2 availed from IDBI Bank amounting H590 lakhs is to be repaid in 47 monthly equal principal repayment of H12.30 Lakhs and 48^th monthly instalment of H11.90 lakhs after moratorium period of two years i.e. December 2023 onwards.

(h) The WCTL under GECL availed from Exim Bank amounting H1,609 lakhs is to be repaid in 48 equal monthly installments commencing after a moratorium of 2 years from the date of first disbursement i.e. April 2024.

(i) The WCTL under GECL availed from SBI amounting H2,320 lakhs is to be repaid in 48 equal monthly installments commencing after a moratorium of 2 years from the date of first disbursement i.e. March 2024.

(j) During the year, new term loan availed from Export-Import Bank of India amounting to H10,000 Lakhs for funding the Expansion project of kandivalasa unit.The loan is repayable in 20 Structured Quarterly installments Commencing from March, 2026, as mentioned below.

First 4 Quarters H250.00 Lakhs

Next 4 Quarters H375.00 Lakhs

Next 12 Quarters H625.00 Lakhs

An amount of H3000.00 Lakhs disbursed during the current year

20.1.4 The Company has used the borrowings for the purposes for which it was taken.

20.1.5 The quarterly returns of current assets filed by the Company with banks are in agreement with books of account.

20.2.1 Financial Assistance received from Department of Scientific and Industrial Research (DSIR) of H 120.00 Lakhs (previous year H 120.00 Lakhs) sanctioned under PATSER Scheme of Technology Promotion Development and Utilization (TPDU) Programme for development of catalysts or Fine Chemicals apart from Active Pharmaceutical Ingredients (API's), and their intermediates viz. Metal Acetylacetonates, Diltiazem Hydrochloride and Taxol C-13 Side Chain. The Company has executed agreements with DSIR, NRDC, IICT Hyderabad, IICT Guwahati under the said programme.

As per the terms of agreement entered with DSIR, 1.3 times of the above amount is payable in 5 equal annual installments after commencement of commercial operations of the product(s) developed under PATSER scheme. The Company has not yet commenced the commercial operations of the said products.

However, NRDC has filed an application before the Honourable High Court of Delhi at New Delhi for appointment of an Arbitral Tribunal and the Court referred the disputes to the Delhi International Arbitration Centre (DIAC), which would appoint an arbitrator to resolve the disputes. The Company has not yet received any communication from DIAC.

23.1 Security Terms

(a) Working Capital Facilities sanctioned by State Bank of India, IDBI Bank Limited and RBL Bank Limited are secured by first charge on all current assets of the Company both present and future on pari-passu basis. These facilities are further secured by second charge on all movable and immovable fixed assets of the Company both present and future on pari-passu basis and also guaranteed by Sri Ramesh Babu Potluri, Chairman and Managing Director and Sri Vamsi Krishna Potluri, Executive Director of the Company, in their personal capacities.

(b) Refer note 40 for the carrying amounts of financial and non-financial assets pledged as security for current and noncurrent borrowings.

23.3 Terms of Repayment: The above working capital facilities are available for one year and will be renewed thereafter. All working capital facilities are repayable on demand.

23.4 The outstandings of all working capital facilities are well within the sanctioned limits.

23.5 The Company has used the borrowings for the purposes for which it was taken.

23.6 The quarterly returns of current assets filed by the Company with banks are in agreement with books of account

Terms and conditions of the above financial liabilities:

For explanations on the company's credit risk management processes, (Refer note.44)

24.1 Trade Payables includes an amount of H418.12 lakhs (March 31,2023 H540.99 lakhs) payable to M/s SMS Lifesciences India Limited, H28.31 lakhs (March 31, 2023 H64.80 lakhs) payable to M/s Eshwar Coal Movers and H6.71 lakhs (March 31, 2023 H12.76 Lakhs ) payable to M/s Raghavendra Engineering Industries India Pvt Ltd who are related parties (Refer note. 46) .

39.2 Defined Benefit Plans and Leave Encashment

The Company has a defined benefit gratuity plan governed by Payment of Gratuity Act, 1972. Every Employee who has completed five years or more of service is entitled to a gratuity on departure at 15 days salary for each completed year of Service. The Scheme is funded through a policy with Life Insurance Corporation of India (LIC).

The Company has another obligation which is Compensated Absence Plan. Every Employee who has worked for a period of 240 days or more during a calendar year shall be allowed during the subsequent calendar year, leave with wages for a number of days calculated as per Act.

The following table summarise net benefit expenses recognised in the statement of profit and loss, the status of funding and the amount recognised in the Balance Sheet for both the plans:

The above sensitivity analysis is 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 acturial assumptions, the same method (Projected Unit Credit Method) has been applied while calculating the defined benefit liability recognised within the Balance Sheet.

The Weighted Average duration of the Gratuity plan is 9.72 years(2022-23 : 10 years) and Leave Encashment is 8.32 years(2022-23:7.99 years)

40 Assets Pledged as Security

For Non Current Borrowings

Secured by First Charge on Property, Plant and Equipment and Second Charge on Current Assets.

For Current Borroiwngs

Secured by First Charge on Current Assets and Second Charge on PPE (Property, Plant and Equipment).

The carrying amounts of Company's assets pledged as security for Non Current and Current Borrowings of H27,897.87 Lakhs (Previous year H25,131.34 Lakhs) are as follows:

43 Fair Value Measurements

43.1 Fair Value Hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a 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 market for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entry specific estimates.If all significant inputs required to fair value an instrument are observable,the instrument is included in Level 2.

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

44 Financial Risk Management Objectives and Policies

Financial Risk Management Framework

The Company is exposed primarily to credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and interest rate), which may adversley impact the fair value of its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

44.1 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. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in Material Concentration of credit risk, except for Trade Receivables.

Financial Instruments and Cash Deposits

For banks and financial institutions, only high rated banks/ institutions are accepted. Other Financial Assets (excluding Bank Deposits) majorly constitute deposits given to State Electricity Departments for supply of power, which the company considers to have negligible credit exposure. Counterparty credit limits are reviewed by the Management on an annual basis, and may be updated throughout the year. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty's potential failure to make payments.

Expected Credit Loss for Trade Receivables under simplified approach

For Trade Receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Credit risk is the risk of financial loss to the Company if a customer to a financial instrument fails to meet its contractual obligations and arises primarily from trade receivables, treasury operations etc. The credit risk related to trade receivables is influenced mainly by the individual characteristics of each customer.

The credit risk is managed by the company by establishing credit limits and continuously monitoring the credit worthiness of the customer. The Company also provides for expected credit losses based on the past experience where it believes that there is high probability of default. All trade receivables greater than 180 days are reviewed and provided for by analysing individual receivables.

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

44.3 Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial isntruments will fluctuate because of changes in market prices. Market prices comprise three types of risk, currency rate risk, interest rate risk and other price risks such as equity risk.

44.3.1 Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instruments will fluctuate because of change in market interest rates. All the debt obligations of the company are with floating interest rates which is subject to exposure to risk of changes in market interest rates.

Interest rate sensitivity

The folloing table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of borrowings affected.With all other variables held constant,the companys's profit before tax is affected through the impact on borrowings,as follows:

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Currency risk arises when transactions are denominated in foreign currencies.

The Company has transactional currency exposures arising from goods supplied or received that are denominated in a currency other than the functional currency. The foreign currencies in which these transactions are denominated are mainly in US Dollars ($). The Company's trade receivable and trade payable balances at the end of the reporting period have similar exposures.

(b) Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate, with all other variables held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities including foreign currency derivatives. The Company's exposure to foreign currency changes for all other currencies is not material.

44.3.3 Other Price Risk:

Other price risk is the risk that the fair value or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk) whether those changes are caused by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments traded in the market.

Company does not have any exposure to price risk ,as there is no market based equity investment made by the company

45 Capital Management

For the purposes of the Company's Capital Management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.

The Company manages its capital structure in consideration to the changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity plus net debt. The Company intends to keep the gearing ratio less than 1. The Company includes within net debt, borrowings including interest accrued on borrowings less cash and short term deposits.

# Interest accrued of Rs.57.49 Lakhs (Refer note.25)

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year

47 Segment Information

In accordance with Indian Accounting Standard (Ind AS) 108 on Operating segments, segment information has been given in the consolidated financial statements of the company, and therefore no separate disclosure on segment information is given in these financial statements.

The above information regarding Micro Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company regarding the status of registration of such vendors under the said Act,as per the intimation received from them on requests made by the company . This has been relied upon by the auditors.The balance payable to MSME creditors are not due as on March 31,2024, so interest has not been provided.

(1) Long-Term borrowings Short-Term borrowings Interest accrued but not due

(2) Profit After Tax Non-operating cash exp like depreciation Interest

(3) Interest on Borrowings lease payments Principal repayments

(4) Current assets - current liabilities

(5) Shareholder's Equity Total debt including interest accrued -Cash & Cash Equivalents

52 Other statutory information

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

ii) The Company does not have any transactions with companies struck off.

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

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

vi) The Company has not utilised short term funds for long term uses.

vii) 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

viii) 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

ix) The Company does not have any such transaction which is not recorded in the books of account 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.

x) The Company has not entered into any scheme of arrangements which has an accounting impact on current and previous financial year

xi) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules ,2017

53 Previous year figure have been regrouped and reclassified wherever considered necessary to confirm to this year's classifications.