(xviii) Provisions, Contingent liabilities and
Contingent assets

Provisions are recognised when the
Company has a present obligation
(legal or constructive) as a result of a
past event, it is probable that an outflow
of economic benefits will be required
to settle the obligation, and a reliable
estimate can be made of the amount of
the obligation.

The amount recognised as a provision is
the best estimate of the consideration
required to settle the present obligation
at the end of each reporting period,
taking into account the risks and
uncertainties surrounding the obligation.

When some or all of the economic
benefits required to settle a provision
are expected to be recovered from a
third party, the receivable is recognised
as an asset, if it is virtually certain that
reimbursement will be received and
the amount of the receivable can be
measured reliably.

Contingent liabilities are disclosed
when there is a possible obligation
arising from past events, the existence
of which will be confirmed only by the
occurrence or non-occurrence of one or
more uncertain future events not wholly
within the control of the Company or a
present obligation that arises from past
events where it is either not probable
that an outflow of resources will be
required to settle the obligation or a
reliable estimate of the amount cannot
be made. Contingent liabilities are not
recognised but are disclosed in the notes
to Standalone financial statements.

Contingent assets are not recognised but
are disclosed in the notes to Standalone
financial statements when economic
inflow is probable.

Provisions, Contingent Liabilities and
Contingent Assets are reviewed at each
Balance Sheet date.

(xix) Financial instruments

A Financial instrument is any contract
that gives rise to a financial asset of one
entity and a financial liability or equity
instrument of another entity.

Financial assets and financial liabilities
are recognised when an entity becomes
a party to the contractual provisions of
the instruments.

All financial instruments are recognised
initially at fair value. Transaction costs
that are attributable to the acquisition of
the financial asset (other than financial
assets recorded at fair value through
profit or loss) are included in the fair
value of the financial assets. Purchase
or sales of financial assets that require
delivery of assets within a time frame
established by regulation or convention
in the marketplace (regular way trade)
are recognised on trade date. Loans and
borrowings and payable are recognised
net of directly attributable transactions
costs.

Purchase or sales of financial assets
that require delivery of assets within a
time frame established by regulation or
convention in the marketplace (regular
way trade) are recognised on trade date.

For the purpose of subsequent
measurement, financial instruments
of the Company are classified in the
following categories: non-derivative
financial assets comprising amortised
cost, debt instruments at fair value
through other comprehensive income
(FVTOCI), equity instruments at fair value
through other comprehensive income
(FVTOCI) and fair value through profit
and loss (FVTPL), non-derivative financial
liabilities at amortised cost or FVTPL and
derivative financial instruments (under
the category of financial assets or
financial liabilities) at FVTPL.

The classification of financial
instruments depends on the objective
of the business model for which it is
held. Management determines the
classification of its financial instruments
at initial recognition.

a) Non-derivative financial assets

(i) Financial assets at amortised cost

A financial asset shall be measured at
amortised cost if both of the following
conditions are met:

(a) the financial asset is held within a
business model whose objective is
to hold financial assets in order to
collect contractual cash flows; and

(b) the contractual terms of the
financial asset give rise on specified
dates to cash flows that are solely
payments of principal and interest
on the principal amount outstanding
(SPPI).

Financial assets are measured
initially at fair value plus transaction
costs and subsequently carried at
amortised cost using the effective
interest rate ('EIR') method, less any
impairment loss.

Financial assets at amortised
cost are represented by trade
receivables, security deposits, cash
and cash equivalents, employee and
other advances and eligible current
and non-current assets.

(ii) Equity instruments at fair value through
other comprehensive income (FVTOCI)

All equity instruments are measured at
fair value. Equity instruments held for
trading is classified as fair value through
profit and loss (FVTPL). For all other
equity instruments, the Company may
make an irrevocable election to present
subsequent changes in the fair value in
OCI. The Company makes such election
on an instrument-by-instrument basis.

I f the Company decides to classify an
equity instrument as at FVTOCI, then all
fair value changes on the instrument,
excluding dividend are recognised in
OCI. There is no recycling of the amount
from OCI to the Standalone statement
of profit and loss, even on sale of the
instrument. However, the Company may
transfer the cumulative gain or loss
within the equity.

Equity Instruments are subsequently
measured at fair value. On initial
recognition of an equity investment that
is not held for trading, the Company may
irrevocably elect to present subsequent

changes in the investment's fair value
in OCI (designated as FVOCI- equity
instrument). This election is made on
an investment-by-investment basis. Fair
value gains and losses recognized in OCI
are not reclassified to the statement of
profit and loss.

(iii) Financial assets at fair value through
profit and loss (FVTPL)

FVTPL is a residual category for financial
assets. Any financial asset which does
not meet the criteria for categorisation
as at amortised cost or as FVTOCI, is
classified as FVTPL.

In addition, the Company may elect
to designate the financial asset,
which otherwise meets amortised
cost or FVTOCI criteria, as FVTPL if
doing so eliminates or significantly
reduces a measurement or recognition
inconsistency.

Financial assets included within the
FVTPL category are measured at fair
values with all changes in the Standalone
statement of profit and loss.

(iv) Derecognition of financial assets

The Company derecognizes a financial
asset when the contractual rights to
the cash flows from the asset expire, or
the financial assets is transferred, and
the transfer qualifies for derecognition.
On derecognition of a financial asset in
its entirety, the difference between the
carrying amount (measured at the date
of derecognition) and the consideration
received (including any new assets
obtained less any new liability assumed)
shall be recognised in the Standalone
statement of profit and loss except
for debt and equity instruments
carried through FVTOCI which shall be
recognised in OCI.

b) Non-derivative financial liabilities

(i) Financial liabilities at amortised cost

Financial liabilities at amortised cost
represented by trade and other payables
are initially recognised at fair value, and
subsequently carried at amortised cost
using the effective interest method.

(ii) Financial liabilities at FVTPL

Financial liabilities at FVTPL are measured
at fair value with all changes recognised

in the Standalone statement of profit
and loss.

(iii) Derecognition of financial liabilities

The Company derecognises financial
liabilities only when, the obligations
are discharged, cancelled or have
expired. The difference between the
carrying amount of the financial liability
derecognised and the consideration
paid and payable is recognised in the
Standalone statement of profit and loss.

c) Derivative financial instruments

The Company holds derivative financial
instruments such as foreign exchange
forward contracts to mitigate the risk
of changes in foreign exchange rates
on foreign currency assets or liabilities.
Derivatives are recognised and measured
at fair value. Attributable transaction
costs are recognised in the Standalone
statement of profit and loss.

(d) Reclassification of Financial Assets and
Financial liabilities

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial
assets which are equity instruments
and financial liabilities. For financial
assets which are debt instruments, a
reclassification is made only if there
is a change in the business model for
managing those assets. If the Company
reclassifies financial assets, it applies
prospectively from the reclassification
date which is the first day of the
immediately next reporting period
following the change in business model.
The Company does not restate any
previously recognized gains, losses
(including impairment gains or losses)
or interest.

(e) Impairment of financial assets

The Company assesses on a forward¬
looking basis the expected credit losses
associated with its assets carried
at amortized cost and FVOCI debt
instruments. Except trade receivables,
expected credit losses are measured at
an amount equal to the twelve- month
expected credit loss unless there has
been a significant increase in credit risk
from initial recognition, in which case
those are measured at life time ECL.

In case of trade receivables, the Company
follows the simplified approach which
requires expected lifetime losses to be
recognized from the initial recognition
of the trade receivables. The Company
calculates the expected credit losses
on trade receivables using a provision
matrix on the basis of its historical credit
loss experience.

f) Financial guarantee contracts

A financial guarantee contract is a
contract that requires the issuer to
make specified payments to reimburse
the holder for a loss it incurs because a
specified debtor fails to make payments
when due in accordance with the terms
of a debt instrument.

Financial guarantee contracts issued by
the Company are initially measured at
their fair values and, if not designated as
at FVTPL, are subsequently measured at
higher of:

• The amount of loss allowance
determined in accordance with
impairment requirements of Ind AS
109 - Financial Instruments and

• The amount initially recognised less,
when appropriate, the cumulative
amount of income recognised in
accordance with the principles of
Ind AS 115 - Revenue from contract
with customers.

g) Foreign exchange gains and losses on
financial assets and financial liabilities

• The fair value of financial assets /
liabilities denominated in a foreign
currency is determined in that
foreign currency and translated at
the spot rate at the end of each
reporting period.

• For foreign currency denominated
financial assets / liabilities
measured at amortised cost and
FVTPL, the exchange differences
are recognised in the Standalone
statement of profit and loss except
for those which are designated as
hedging instruments in a hedging
relationship.

• Changes in carrying amount of
investments in equity instruments at

FVTOCI relating to changes in foreign
currency rates are recognised in
other comprehensive income.

• For financial liabilities that are
denominated in a foreign currency
and are measured at amortised
cost at the end of each reporting
period, the foreign exchange gains
and losses are determined based
on the amortised cost of the
instruments and are recognised in
the Standalone statement of profit
and loss.

• For financial liabilities that are
measured as at FVTPL, the foreign
exchange component forms part
of the fair value gains or losses and
is recognised in the Standalone
statement of profit and loss.

h) Investment in subsidiaries

Investment in subsidiaries is carried
at cost less impairment, if any, in the
separate financial statements.

(xx) Trade and other payables

These amounts represent liabilities for goods
and services provided to the Company prior to
the end of the financial year which are unpaid.
The amounts are unsecured and are usually
paid as per credit terms of the contract.
Trade and other payables are presented as
current liabilities unless payment is not due
within 12 months after the reporting period.
They are recognised initially at their fair value
and subsequently measured at amortised
cost using the effective interest method.

(xxi) Income recognition - Interest Income

Interest income from financial assets at fair
value through profit or loss is disclosed as
interest income within other income. Interest
income on financial assets at amortised cost
and financial assets at FVOCI is calculated
using the effective interest method is
recognised in the statement of profit and loss
as part of other income.

Interest income is calculated by applying the
effective interest rate to the gross carrying
amount of a financial asset except for
financial assets that subsequently become
credit-impaired. For credit-impaired financial
assets the effective interest rate is applied
to the net carrying amount of the financial
asset (after deduction of the loss allowance).

(xxii) Impairment

a) Financial assets

In accordance with Ind AS 109 - Financial
Instruments, the Company applies
expected credit loss (ECL) model
for measurement and recognition of
impairment loss. The Company follows
'simplified approach' for recognition
of impairment loss allowance on trade
receivables. The application of simplified
approach does not require the Company
to track changes in credit risk. Rather, it
recognises impairment loss allowance
based on lifetime ECLs at the end of
each reporting period, right from its
initial recognition.

For recognition of impairment loss on
other financial assets and risk exposure,
the Company determines that whether
there has been a significant increase in
the credit risk since initial recognition.
Lifetime ECLs are the expected credit
losses resulting from all possible default
events over the expected life of a
financial instrument.

ECL is the difference between all
contractual cash flows that are due to
the Company in accordance with the
contract and all the cash flows that
the entity expects to receive (i.e., all
shortfalls), discounted at the original
EIR. When estimating the cash flows, an
entity is required to consider:

• All contractual terms of the financial
instrument (including prepayment,
extension etc.) over the expected life
of the financial instrument. However,
in rare cases when the expected life
of the financial instrument cannot
be estimated reliably, then the entity
is required to use the remaining
contractual term of the financial
instrument;

• Cash flows from the sale of collateral
held or other credit enhancements
that are integral to the contractual
terms.

As a practical expedient, the Company
uses a provision matrix to determine
impairment loss on portfolio of its
trade receivables. The provision matrix
is based on its historically observed
default rates over the expected life of
the trade receivables and is adjusted

for forward looking estimates. At every
reporting date, the historical observed
default rates are updated and changes in
forward looking estimates are analysed.

ECL impairment loss allowance (or
reversal) recognised during the period
is recognised as income / expense in
the Standalone statement of profit and
loss. This amount is reflected under the
head other expenses in the Standalone
statement of profit and loss. The balance
sheet presentation for various financial
instruments is described below:

ECL is presented as an allowance, i.e.,
as an integral part of the measurement
of those assets in the balance sheet.
The allowance reduces the net carrying
amount. Until the asset meets write off
criteria, the Company does not reduce
impairment allowance from the gross
carrying amount.

b) Non-financial assets

The Company assesses at each balance
sheet date whether there is any objective
evidence that a non-financial asset or
a Company of non-financial assets is
impaired. If any such impairment exists,
the recoverable amount of an asset is
estimated to determine to the extent
of impairment, if any. Where it is not
possible to estimate the recoverable
amount of an individual asset, the
Company estimates the recoverable
amount of the cash-generating unit to
which the asset belongs.

Goodwill is tested for impairment on an
annual basis and whenever there is an
indication that goodwill may be impaired,
relying on a number of factors including
operating results, business plans and
future cash flows. For the purpose of
impairment testing, goodwill acquired
in a business combination is allocated
to the Company's cash-generating units
(CGU) or Companies of CGU's expected
to benefit from the synergies arising from
the business combination. A CGU is the
smallest identifiable Company of assets
that generates cash inflows that are
largely independent of the cash inflows
from other assets or Company of assets.
Impairment occurs when the carrying
amount of a CGU including the goodwill,
exceeds the estimated recoverable
amount of the CGU. The recoverable

amount of a CGU is the higher of its fair
value less cost to sell and its value-in¬
use. Value-in-use is the present value of
future cash flows expected to be derived
from the CGU.

Total impairment loss of a CGU is
allocated first to reduce the carrying
amount of goodwill allocated to the
CGU and then to the other assets of
the CGU pro rata on the basis of the
carrying amount of each asset in the
CGU. An impairment loss on goodwill is
recognised in the Standalone statement
of profit and loss and is not reversed in
the subsequent period.

(xxiii) Earnings per share (EPS)

Basic EPS is computed by dividing the
net profit for the period attributable to
the equity shareholders by the weighted
average number of equity shares
outstanding during the period.

Diluted EPS amounts are calculated by
dividing the profit attributable to owners
of the company by the weighted average
number of Equity shares outstanding
during the year plus the weighted
average number of Equity shares that
would be issued on conversion of all
the dilutive potential Equity shares into
Equity shares. Dilutive potential equity
shares are deemed converted as of the
beginning of the period, unless issued
at a later date. Dilutive potential equity
shares are determined independently
for each period presented. The number
of equity shares and potentially dilutive
equity shares are adjusted for bonus
shares, as appropriate.

(xxiv) Insurance claims

I nsurance claims are accounted for on
the basis of claims admitted / expected
to be admitted and to the extent that
there is no uncertainty in receiving the
claims.

(xxv) Trade Receivables

Trade Receivables are amounts due
from customers for goods sold or
services performed in the ordinary
course of business. Trade receivables
are recognized initially at the amount
of consideration that is unconditional
unless they contain significant financing
components, when they are recognized
at fair value. The Company holds the

trade receivables with the objective
of collecting the contractual cash
flows and therefore measures them
subsequently at amortised cost using
the effective interest method, less loss
allowance, if any.

(xxvi) Cash and cash equivalents

Cash and cash equivalent in the balance
sheet comprise cash at banks and on
hand and short-term deposits with an
original maturity of three months or less,
that are readily convertible to a known
amount of cash and which are subject to
an insignificant risk of changes in value.

Cash flow statements are prepared in
accordance with "Indirect Method" as
explained in the Ind AS on Statement of
Cash Flows (Ind AS - 7). The cash flows
from operating, financing and investing
activity of the Company are segregated.

(xxvii) Segment

Operating segments have been identified
taking into account the nature of
business, the differing risks and returns,
the organisational structure and the
internal reporting system.

The Group Chief Executive Officer of
the Company is the Chief Operating
Decision Maker (CODM) and monitors
the geographic segment of its business
separately for the purpose of making
decisions about resource allocation and
performance assessment. The Company
is mainly engaged in the business of
pharmaceuticals. Considering the nature
of business and financial reporting of the
Company, the Company has only one
business segment viz; pharmaceuticals
as primary reportable segment.

(xxviii) Cash dividend

The Company recognises a liability to pay
dividend to equity holders of the parent
when the distribution is authorised,
and the distribution is no longer at the
discretion of the Company. As per the
corporate laws in India, a distribution is
authorised when it is approved by the
shareholders. A corresponding amount
is recognised directly in equity.

(xxix) Fair value measurement

Fair value is the price that would
be received to sell an asset or paid
to transfer a liability in an orderly

transaction between market participants
at the measurement date. The fair
value measurement is based on the
presumption that the transaction to sell
the asset or transfer the liability takes
place either:

• In the principal market for the asset
or liability or

• In the absence of a principal market,
in the most advantageous market
for the asset or liability.

The principal or the most advantageous
market must be accessible by the
Company.

The fair value of an asset or a liability
is measured using the assumptions that
market participants would use when
pricing the asset or liability, assuming
that market participants act in their
economic best interest.

The Company uses valuation
techniques that are appropriate in the
circumstances and for which sufficient
data are available to measure fair
value, maximising the use of relevant
observable inputs and minimising the use
of unobservable inputs.

All assets and liabilities for which
fair value is measured or disclosed in
the Standalone financial statements
are categorised within the fair value
hierarchy, described as follows, based on
the lowest level input that is significant
to the fair value measurement as a
whole:

• Level 1 — Quoted (unadjusted)
market prices in active markets for
identical assets or liabilities

• Level 2 — Valuation techniques
for which the lowest level input
that is significant to the fair value
measurement is directly or indirectly
observable

• Level 3 — Valuation techniques
for which the lowest level input
that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are
recognised in the financial statements
on a recurring basis, the Company
determines whether transfers have
occurred between levels in the hierarchy
by re-assessing categorisation (based on
the lowest level input that is significant to
the fair value measurement as a whole)
at the end of each reporting period.

For the purpose of fair value disclosures,
the Company has determined classes of
assets and liabilities on the basis of the
nature, characteristics and risks of the
asset or liability and the level of the fair
value hierarchy as explained above.

(xxx) Current versus non-current

classification

The Company presents assets and
liabilities in the balance sheet based on
current / non-current classification.

An asset is treated as current when:

• It is expected to be realised or
intended to be sold or consumed in
normal operating cycle,

• It is held primarily for the purpose of
trading,

• It is expected to be realised within
twelve months after the reporting
period, or

• Cash or cash equivalent unless
restricted from being exchanged or
used to settle a liability for at least
twelve months after the reporting
period.

All other assets are classified as non¬
current.

A liability is current when:

• It is expected to be settled in normal
operating cycle,

• It is held primarily for the purpose of
trading,

• It is due to be settled within twelve
months after the reporting period,
or

• There is no unconditional right to
defer the settlement of the liability

for at least twelve months after the
reporting.

All other liabilities are classified as non¬
current.

Deferred tax assets and liabilities are
classified as non-current assets and
liabilities.

The operating cycle is the time between
the acquisition of assets for processing
and their realisation in cash and cash
equivalents. The Company has identified
twelve months as its operating cycle.
The terms of the liability that could,
at the option of the counterparty,
result in its settlement by the issue of
equity instruments do not affect its
classification.

(xxxi) Exceptional Items

Exception items include income or
expense that are considered to be part of
ordinary activities, however, are of such
significance and nature that separate
disclosure enables the user of Financial
Statements to understand the impact in
a more meaningful manner. Exceptional
items are identified by virtue of either
their size or nature so as to facilitate
comparison with prior periods and to
assess underlying trends in the financial
performance of the Company.

(xxxii) Rounding of amounts

All amounts disclosed in the financial
statements and notes have been
rounded off to 2 decimal points to the
nearest millions as per the requirement
of Schedule III unless otherwise stated.

(xxxiii) Events after reporting date

Where events occu rring after the
Balance Sheet date provide evidence
of conditions that existed at the end of
the reporting period, the impact of such
events is adjusted within the financial
statements. Otherwise, events after the
balance sheet date of material size or
nature are only disclosed.

’A. Use of estimates and management
judgements

In application of the accounting policies, which are
described in 2, the management of the Company
is required to make judgements, estimates and
assumptions about the carrying amounts of assets

and liabilities that are not readily apparent from
other sources. The estimates and assumptions are
based on historical experience and other factors
that are considered to be relevant. Actual results
may differ from these estimates.

The estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the
period in which the estimates are revised if the
revision affects only that period, or in the period
of revision and future periods if the revision affects
both current and future periods. In particular,
information about significant areas of estimation,
uncertainty and critical judgements used in
applying accounting policies that have the most
significant effect on the amounts recognised in
the Standalone financial statements is included
in the following notes:

(i) Useful life of property, plant and equipment and
intangible assets

The useful life of the assets are determined in
accordance with Schedule II of the Companies
Act, 2013. In cases, where the useful life is different
from that or is not prescribed in Schedule II, it is
based on technical advice, taking into account
the nature of the asset, the estimated usage
of the asset, the operating conditions of the
asset, past history of replacement, anticipated
technological changes, manufacturers warranties
and maintenance.

(ii) Impairment

An impairment loss is recognised for the amount
by which an asset's / investment's or cash¬
generating unit's carrying amount exceeds its
recoverable amount. To determine the recoverable
amount, management estimates expected
discounted future cash flows from each asset or
cash-generating unit.

(iii) Deferred tax

Deferred income tax liabilities are recognised
for all taxable temporary differences. Deferred
income tax assets are recognised to the extent
that it is probable that taxable profit will be
available against which the deductible temporary
differences, and the carry forward of unused tax
credits and unused tax losses can be utilised.

(iv) Fair value

Management uses valuation techniques in
measuring the fair value of financial instruments
where active market quotes are not available. In
applying the valuation techniques, management
makes maximum use of market inputs and uses

estimates and assumptions that are, as far
as possible, consistent with observable data
that market participants would use in pricing
the instrument. Where applicable data is not
observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm's
length transaction at the reporting date.

(v) Post-retirement benefit plans

The obligation arising from the defined benefit
plan is determined on the basis of actuarial
assumptions which include discount rate, trends
in salary escalation and vested future benefits and
life expectancy. The discount rate is determined
with reference to market yields at the end of each
reporting period on the government bonds.

(vi) Provisions and contingencies

The recognition and measurement of other
provisions are based on the assessment of the
probability of an outflow of resources, and on

past experience and circumstances known at the
reporting date. The actual outflow of resources at
a future date may therefore vary from the figure
estimated at end of each reporting period.

(vii) Share based payments

Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which is
dependent on the terms and conditions of the
grant. This estimate also requires determination
of the most appropriate inputs to the valuation
model including the expected life of the share
option, volatility and dividend yield and making
assumptions about them. For the measurement of
the fair value of equity-settled transactions with
employees at the grant date, the Company uses
black scholes model for valuation of fair value of
option as per Employee Share Option Plan. The
assumptions used for estimating fair value for
share-based payment transactions are disclosed
in Note 49.

(vii) Shares reserved for issue under options / warrants : For details of shares reserved for issue under the Share
based payment plan of the Company, please refer note 49.

(viii) As per records of the company, including its register of shareholders/ members and other declarations
received from shareholders regarding beneficial interest, the above shareholding represents both legal
and beneficial ownerships of shares.

(ix) 4,12 ,250 shares of ' 2 each (as at 31 March 2025: 4,12,250 shares) are reserved towards outstanding
employee stock options granted / available for grant.The said shares are treated as Treasury shares.

Nature and purpose of Reserves

(a) Share suspense account

Represents equity share capital to be issued on account of amalgamation under Appendix C to Ind AS 103,
'Business Combinations of Entitles under Common Control'. (Refer Note 52)

(b) Share application money pending allotment

Represents amount received for allotment of employee stock options against which corresponding equity
shares are pending for allotment as on reporting date.

(c) Capital reserve

Capital reserve on business combination represents the gains of capital nature which mainly include the
excess of value of net assets acquired over consideration paid by the Company for business amalgamation
transactions in earlier years. It also represents capital reserve on business combination which arises on
transfer of business between entities under common control (Refer Note 52).

(d) Securities premium account

Securities premium includes the difference between the face value of the equity shares and the consideration
received in respect of shares issued. The reserves can be utilized only for limited purposes such as issuance
of bonus shares in accordance with the provisions of the Companies Act, 2013.

(e) Employees stock options outstanding account

This relate to shares granted to the employees of the Company and its subsidiaries.

(f) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of
net income at a specified percentage in accordance with applicable regulations. The purpose of these
transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up
capital of the Company for that year, then the total dividend distribution is less than the total distributable
results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily
transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the
amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of Companies Act, 2013. It also includes amounts relating to stock options that have been
vested but subsequently lapsed.

(g) Retained earnings

Retained earnings are the profits / (loss) that the Company has earned / incurred till date, less any transfers
to general reserve and dividends or other distributions paid to shareholders.

(h) Reserve for equity instruments through other comprehensive income

Reserve for equity instruments through other comprehensive income represents the cumulative gains (net
of losses) arising on revaluation of equity instruments measured at fair value through other comprehensive
income, net of amount reclassified, if any, to retained earnings when those instruments are disposed off.

(i) Treasury reserve

Treasury reserve represents the shares of the Company held by Sequent Scientific Employee Stock Option
Plan Trust.

(j) Money received against share warrants

Represents consideration towards 25% of the issuance price received for subscription of share warrants on
account of amalgamation.

Notes:

(i) Cash credit facilities from banks in Viyash Scientific Limited (Formerly Known as Sequent Scientific
limited) are secured by a first pari passu charge on current assets, movable fixed assets (including
plant and machinery) and immovable properties situated at Bollaram, Telangana and Choutuppal,
Telangana; a second-ranking charge on stocks, book debts, export stocks and export receivables;
and an exclusive charge on current and movable assets of the Company, present and future. The
facilities are further secured by equitable mortgages over properties at Bollaram and Choutuppal,
Telangana, including Unit VI at Choutuppal, Unit II at Jeedimetla, Unit IV at Nalgonda and the R&D Unit
at Jeedimetla; hypothecation of stocks, book debts, plant and machinery, export debtors and export
inventories; fixed deposits maintained as margin for LC and BG facilities, and 10% cash margin for
bank guarantee facilities; confirmed letters of credit; corporate guarantees; personal guarantees of
all directors and property owners, including Mr. Kalidindi Srihari Raju^{1 2}; and guarantees provided by the
directors.

(ii) Working capital loan from banks are secured by exclusive charge on current assets of the Company
and by unconditional & irrevocable guarantee from it's wholly-owned-subsidiary Alivira Animal Health
Limited, India.

(iii) The interest on working capital loan from bank is floating in nature which ranges from 8.00% to 10.25%
per annum. (31 March 2025: 9.35% to 10.10% per annum).

(iv) The interest on working capital loan from financial institution is floating in nature which ranges from
7.44% to 8.15% per annum. (31 March 2025: 7.83% to 8.50% per annum).

(v) Refer Note 29 on disclosures related to financing arrangements with financial institutions in respect of
payments to certain suppliers of the Company.

29 Trade payables (Contd.)

Notes:

(i) Trade payables (other than due to micro, small and medium enterprises) are non-interest bearing and are
normally settled in 30 - 120 days.

(ii) The Company's exposures to currency and liquidity risks related to trade payables is disclosed in note 54.5
and 54.4 respectively.

(iii) Refer note 48 for dues payable to related parties

(iv) The Company has entered into an agreement with financial institutions for the supply chain financing
arrangement. As per the arrangement, the suppliers may elect to factor their receivable from the Company
and receive the payment due from the financial institutions before the due date. As per the arrangement,
the financial institutions agrees to pay amounts which Company owes to it's suppliers and the Company
agrees to pay the financial institutions at a date later than suppliers are paid.

The nature and function of the liabilities remain the same even after factoring as the Company is neither
legally released from its original obligation to the supplier nor the terms of the original liability are amended
in a way that is considered a substantial modification. Hence, the Company has not derecognised the
liabilities which are factored by the suppliers and disclosed the said amount within trade payables. Further,
no additional interest has been paid to the financial institution by the Company on the amounts due to the
suppliers. The payable under supply chain financing arrangement amounts to ' 119.39 million as at 31 March
2026 (31 March 2025: ' 19.06 million).

Apart from the above, the Company has also entered into arrangements, wherein the Company requests
the financial institutions to make payments on the due date agreed with the suppliers and the Company
pays to the financial institutions at the end of the extended period of payment. In this case, the Company
derecognizes the liabilities towards the suppliers on the date of payment by the financial institutions to
the suppliers and recognizes the amounts paid within Borrowings. During the year ended March 31, 2026,
the Company has recognized interest expense amounting to ' 13.37 million (31 March 2025: ' 15.26 million)
under the aforementioned arrangement. The payable to the financial institution amounts to ' 73.41 million
as at 31 March 2026 (31 March 2025: ' 241.16 million) under this arrangement which has been recognized
under "Short Term Borrowings" in the financial statements.

(ii) Trade receivables and Contract Balances

The Company classifies the right to consideration in exchange for deliverables as a trade receivable. A
receivable is a right to consideration that is unconditional upon passage of time. Revenue from contract
with customers in respect of sale of goods are recognized at a point in time when the Company transfers
control over the product to the customer. The performance obligation in respect of sale of services is
satisfied when performance obligation in respect of services are completed.

Note:

(a) The Company has recorded below transaction costs pertaining to Scheme:

(i) Stamp duty recognized on estimated basis amounting to ' 296.50 million for the year ended 31 March
2026 payable pursuant to scheme.

(ii) Transactions costs with respect to fees payable to merchant banker in relation to Scheme amounting
to ' 107.60 million for the year ended 31 March 2026

(iii) Other transaction costs with respect to fees payable to lawyers and other consultants engaged in
relation to the Scheme amounting to ' 37.97 million and ' 78.48 million for the year ended 31 March 2026
and 31 March 2025 respectively.

(b) During the previous year ended 31 March 2025, the Company had recorded provision for one time performance
incentive payable to a Key Managerial Personnel as approved by the Board of Directors of erstwhile Viyash
Life Sciences Private limited.

(c) During the previous year ended 31 March 2025, based on confirmation from vendor, the Company reversed
provision related to domain expert advisory fees lowards revamping of manufacturing and procurement
processes.

42 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to owners of the Company
by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to owners of the company by the
weighted average number of equity shares outstanding during the year plus the weighted average number
of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity
shares.

44 Employee benefit plans

(i) Defined contribution plans:

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are
defined contribution plans, for qualifying employees. Under the schemes, the Company is required to
contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised
' 69.37 (31 March 2025 : ' 67.41) for Provident Fund contributions and ' 2.24 (31 March 2025: ' 2.67) for
Employee State Insurance Scheme contributions in the standalone statement of profit and loss. As at
31 March 2026, contribution of ' 10.12 (31 March 2025: ' 11.74) is outstanding which is paid subsequent
to the end of respective reporting periods.

49 Share-based payment arrangements

(I) Share-based payment arrangements - Sequent ESOP 2010 and Sequent ESOP 2020
A. Description of share-based payment arrangements

i. Share option programmes (equity-settled)

The Company implemented "SeQuent Scientific Employees Stock Option Plan 2010" (SeQuent ESOP 2010), as
approved by the Shareholders of the Company on 24 May 2010 and it was further modified by the member
on 24 September 2015. Further the company has implemented "SeQuent Scientific Employees Stock Option
Plan 2020" (SeQuent ESOP 2020) which was approved by shareholders on 17 January 2021.

ii. Employee stock option expenses recognised in statement of profit and loss

The expense on Employee Stock Option plan debited to the standalone statement of profit and loss during
the financial year ended 31 March 2026 is ' 77.02 (31 March 2025: ' 105.10). The recoveries from its subsidiary
companies towards the stock options granted to subsidiary employees is ' 204.32 (31 March 2025 : ' 218.96),
pursuant to the employee stock option schemes. The entire amount pertains to equity-settled employee
share-based payment plans.

B. Measurement of fair values

Fair value of share options granted in the year

The fair value of the share options granted on 18 Apr 2025 ranges from ' 82.43 to ' 99.64 (06 Sep 2024 ranges
from ' 107.67 to ' 124.17). The fair value of the employee share options has been measured using the Black-
Scholes formula. Service and non-market performance conditions attached to the arrangements if any,
were not taken into account in measuring fair value.

D. Share options outstanding at the end of the year

The share option outstanding at the end of the year had a weighted average exercise price of ' 86.00 (as
at 31 March 2025 : ' 86.00) and weighted average remaining contractual life of 4.2 years (31 March 2025 :
4.97 years).

II. Share-based payment arrangements - Viyash ESOP 2022 Scheme and 2024 Scheme
A. Description of share-based payment arrangements

Viyash Life Sciences Private Limited ("Amalgamating Company", "esrtwhile company"), implemented "Viyash
ESOP Scheme 2022", which was approved by the board of directors on 22 August 2022 to provide incentives
to the eligible employees with vesting conditions as applicable.

The Viyash ESOP Scheme 2022 is administered by Viyash Employee's Benefit Trust ('Trust').Erstwhile Company
has given loan to the Trust for purchase of the Company's shares and such loan outstanding as at 31 March
2025 is ' 101.86.

Participation in the plan by employees is at the Board's discretion and no individual has a contractual right
to participate in the plan or to receive any guaranteed benefits. The maximum number of ESOPs per option
grantee under the plan shall not exceed 2% of the total paid-up share capital of the Company on a fully
diluted basis during the tenure of the plan.

Options are granted under the plan for no consideration and carry no dividend or voting rights. The options
granted shall vest in a graded manner between completion of 2 years up to 4 years of service from the grant
date, unless specific details are laid out by the administrator. Once vested, the options remain exercisable
for a period of 24 months. The exercise price of the share underlying an option shall be ' 90 per share. When
exercised, each option is convertible into one equity share.

The Company has identified employees as eligible under the said plan and have granted options to eligible
employees. As a part of ESOP pool, the Company had issued total 84,30,550 partly paid up equity shares
to the Trust for the purpose of further issuance to the employees in lieu of the stock. The said shares are
treated as Treasury shares.

During the year ended 31 March 2025, the erstwhile Company merged with Viyash Scientific Limited pursuant
to the Composite Scheme of Arrangement approved by the Hyderabad Bench of the National Company Law

b. Measurement of fair values

Fair value of share options granted in the year

The weighted average fair value of the share options granted on 13 July 2024 ranges from ' 48.12 to ' 59.07. The fair
value of the employee share options has been measured using the Black-Scholes formula. Service and non-market

d. Adoption of New ESOP Scheme by the Viyash Scientific Limited:

Pursuant to the Scheme of Amalgamation of the erstwhile Company with Viyash Scientific Limited, the Board
of Directors of the Company has approved the adoption of a new Employee Stock Option Scheme ("New
ESOP Scheme") for issue of stock options not exceeding 2.8% of the post-amalgamation paid-up equity
share capital of the Company on a fully diluted basis, in exchange for the options granted under the Viyash
Employee Stock Option Plan 2022 ("Viyash ESOP 2022").

The terms and conditions of the New ESOP Scheme shall be the same as, or not less favourable than, those
prescribed under the Viyash ESOP 2022.

As at 31 March 2026, the Company is in the process of implementing the swap of outstanding options
under the Viyash ESOP 2022 with options under the New ESOP Scheme of Viyash Scientific Limited. Pending
completion of the swap the Company has continued to recognize share-based payment expense under the
exsisting Viyash ESOP 2022 Scheme.

e. Employee stock option expenses recognised in statement of profit and loss

The expense on Employee Stock Option plan debited to the statement of profit and loss during 2025-26 is
INR 57.10 (31 March 2025: INR 224.91). The entire amount pertains to equity-settled employee share-based
payment plans.

B. Founder Share Warrants of Viyash Life Sciences Private Limited (erstwhile Company)

a. Description of share-based payment arrangements

Viyash Life Sciences Private Limited executed an Investment Agreement ('IA') dated September 28, 2020 with
CA Hull Investments ('Investor'), Hari Babu Bodepudi, Kalidindi Srihari Raju ('Founder(s)') and the Persons

49 II. Share-based payment arrangements - Viyash ESOP 2022 Scheme and 2024 Scheme (Contd.)

specified in Schedule A of the IA ('Founder Affiliates'). The IA requires the Company to issue founder share
warrants to the said two promoters subsequent to every tranche of investment made by the Investor in the
Company.

Accordingly, the Company has issued 1,52,77,285 founder share warrants to the said two promoters and other
identified persons without any initial consideration, entitling them for subscription of equivalent number
of Company's equity shares of face value of INR 10/- each. The share warrants are split into Performance
linked warrants ('PLW') and Environment, health and safety linked warrants ('EHSLW'), each category having
its own vesting conditions and vesting period. The exercise price of the share underlying all the categories
of warrant shall be INR 90/- per share. The founder share warrants satisfy the definition of an equity-settled
share-based payment transaction under Ind AS 102 - Share-based Payment and accordingly, all the relevant
disclosures required by Ind AS 102 are stated below.

*Note:

Performance linked warrants:

These warrants shall vest to the warrant holders upon achievement of certain parameters by the investor on their
exit from the Company. The parameters are associated with the investor achieving either a specified range of overall
aggregate return (OAR) or internal rate of return (IRR) realised on the US Dollar value of all the amounts invested by
the Investor in the Company as summarised below-

(i) During the year ended 31 March 2025, an amendment has been made to the Investment Agreement ('IA')
dated 28 September 2020. Pursuant to the amendment, vesting conditions related to PLW and EHSLW
have been removed. Consequently, PLW of 10,184,856 share warrants and EHSLW of 5,092,428 share
warrants have been vested and became exercisable by the Founders. Subsequently, Kalidindi Sri Hari
Raju has not exercised and waived off his rights with respect to 1,096,616 share warrants. Accordingly,

III. Share warrants

During the year ended 31 March 2026, pursuant to the Scheme of Amalgamation of the erstwhile Company
with Viyash Scientific Limited, the Company allotted 2,03,41,257 warrants to the eligible warrant holders of
erstwhile Viyash Life Sciences Private Limited in accordance with the warrant exchange ratio prescribed
under the Scheme, being 56 warrants of the Company for every 100 warrants held in erstwhile Viyash Life
Sciences Private Limited.

In respect of the aforesaid warrant swap, the Company received consideration amounting to ' 925.22 during
the year ended 31 March 2026, representing 25% of the total warrant consideration in accordance with the
terms of the Scheme. The said amount has been recognised under "Share warrants" within Other Equity.

a. Reconciliation of outstanding share warrants

The number and weighted average exercise prices of share options under the share option programmes
were as follows:

50 Lease Accounting

The Company has lease contracts for office building, warehouses, vehicles, equipment and others taken
on rent which generally have lease term of 2 to 3 years. The Company's obligations under its leases are
secured by the lessor's title to the leased assets. The Company is restricted from assigning and subleasing
the leased assets.

Amalgamation of Viyash Life Sciences Private Limited ('VLSPL'), Symed Labs Limited ('Symed'), Vandana
Life Sciences Private Limited ('Vandana'), Appcure Labs Private Limited ('Appcure'), Vindhya Pharma
(India) Private Limited ('VPPL'), S.V. Labs Private Limited ('SVL'), Vindhya Organics Private Limited ('VOPL'),
Geninn Life Sciences Private Limited ('Geninn') (together referred as 'erstwhile Viyash') and Sequent
Research Limited ('erstwhile SRL') with the Company:

The Board of Directors of the Company at the meeting held on 26 September 2024 have approved the
Composite Scheme of Amalgamation ('the Scheme') amongst the Company, Sequent Research Limited
(wholly owned subsidiary of the Company), Viyash Life Sciences Private Limited, Symed Labs Limited,
Vandana Life Sciences Private Limited, Appcure Labs Private Limited, Vindhya Pharma (India) Private Limited,
S.V. Labs Private Limited, Vindhya Organics Private Limited, Genin Life Sciences Private Limited in terms of
Section 230-232 and other applicable provisions of Companies Act, 2013.

The Hon'ble National Company Law Tribunal (NCLT), Hyderabad vide its order dated 18 November 2025
sanctioned the Scheme with an Appointed date of 01 April 2025. The Scheme has become effective on
16 December 2025 upon filing of the certified true copy of the order with the Registrar of Companies
Hyderabad. The effect of the Scheme has been given in the financial statements for the year ended 31
March 2026.

As per the terms of the Scheme, the Company has alloted 18,19,21,827 fully paid-up equity shares of face
value of ' 2 each, as per the share exchange ratio of 56 fully paid-up equity shares of face value of ' 2
each of the Company for every 100 fully paid-up equity shares of face value of ' 10 each held by eligible
shareholders of erstwhile Viyash as on the record date. The Company has also alloted 2,03,41,257 warrants
under the Scheme to eligible warrant holder of erstwhile Viyash as per the Warrant exchange ratio of 56
warrants of the Company for every 100 warrants held in erstwhile Viyash and received a consideration of
' 925.22 million during the current year (representing 25% on Warrant consideration as per the Scheme).

Accounting Treatment

1. Amalgamation of Symed, Vandana, SVL, VPPL, VOPL, Geninn and Appcure (Transferor Companies)
with VLSPL (Transferee Company)

The above amalgamation has been accounted in accordance with "Pooling of interest method" as laid
down in Appendix C - 'Business combinations of entities under common control' of Ind AS 103 notified
under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
specified in the scheme, such that:

a. the transferee Company has recorded the assets, liabilities and reserves, if any, of the Transferor
Companies vested in it pursuant to this Scheme, at the carrying values as appearing in the
consolidated financial statements of the Transferee Company.

b. the identity of the reserves of the Transferor Companies have been preserved and the Transferee
Company has recorded the reserves of the Transferor Companies in the same form and at the
carrying amount as appearing in the consolidated financial statements of the Transferee Company.

c. the inter-company balances between the Transferor Companies and the Transferee Company, if
any, appearing in the books of the Transferee Company and / or the Transferor Companies have
been cancelled with no further obligation in that behalf.

d. the value of all the investments held by the Transferee Company 1 in the Transferor Companies
have been cancelled.

e. the surplus/deficit, if any arising after taking the effect of above clauses have been transferred to
Capital Reserve / Amalgamation deficit account as the case may be, in the financial statements
of the Transferee Company and have been presented separately from other capital reserves with
disclosure of its nature and purpose in the notes.

f. in case of any difference in accounting policy between the Transferor Companies and the Transferee
Company, the accounting policies followed by the Transferee Company has prevailed to ensure
that the financial statements reflect the financial position based on consistent accounting policies.

g. comparative financial information in the financial statements of the Transferee Company have
been restated for the accounting impact of amalgamation of the Transferor Companies, as stated

above, as if the amalgamation had occurred from the beginning of the comparative period.
However, if business combination had occurred after that date, the prior period information shall
be restated only from that date.

h. any matter not dealt with in clauses hereinabove have been dealt with in accordance with the
requirement of applicable Indian Accounting Standards.

2. Amalgamation of erstwhile Viyash (Amalgamating Company 1) with Sequent Scientific Limited
('SSL') (Amalgamated Company)

The above amalgamation has been accounted in accordance with "Pooling of interest method" as laid
down in Appendix C - 'Business combinations of entities under common control' of Ind AS 103 notified
under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as
specified in the scheme, such that:

a. The Amalgamated Company has recorded the assets and liabilities, if any, of the Amalgamating
Company 1 vested in it pursuant to this Scheme, at the carrying values thereof and in the same
form as appearing in the standalone financial statements of the Amalgamating Company 1.

b. The identity of the reserves of the Amalgamating Company 1 has been preserved and the
Amalgamated Company has recorded the reserves of the Amalgamating Company 1 in the
same form and at the carrying value as appearing in the standalone financial statements of the
Amalgamating Company 1.

c. Pursuant to the amalgamation of the Amalgamating Company 1 with the Amalgamated Company,
inter-company balances, between the Amalgamated Company and/or the Amalgamating Company
1, if any, as appearing in the books of the Amalgamated Company and/or the Amalgamating
Company 1 has been cancelled and there is no further obligation in that behalf.

d. The Amalgamated Company has credited its share capital account with the aggregate face value
of the equity shares issued by it to the shareholders of Amalgamating Company 1.

e. Existing share capital along with securities premium (including the treasury shares) of Amalgamating
Company 1 has been cancelled.

f. The surplus, if any arising after taking the effect of clauses (a) to (e) has been transferred to
Capital Reserve in the financial statements of the Amalgamated Company. The deficit, if any arising
after taking the effect of clauses (a) to (e) and adjustment of previously existing credit balance
in capital reserve, if any, has been first debited to Retained Earnings in the financial statements
of the Amalgamated Company to the extent of the balance available in the said account. If there
is further deficit, the amount has been debited to the Amalgamation Adjustment Deficit Account
and its nature is akin to Debit balance in Profit and Loss Account. The balance of this account has
been presented as part of reserves and a note explaining the nature has been given in the financial
statements of the Amalgamated Company

g. I n case of any difference in accounting policy between the Amalgamating Company 1 and the
Amalgamated Company, the accounting policies followed by the Amalgamated Company has
prevailed to ensure that the financial statements reflect the financial position based on consistent
accounting policies.

h. Comparative financial information in the financial statements of the Amalgamated Company have
been restated for the accounting impact of the merger of the Amalgamating Company 1, as stated
above, as if the merger had occurred from the beginning of the comparative period presented.
However, if the entities came under common control after that date, the prior period information
has been restated only from that date.

3. Amalgamation of erstwhile SRL (Amalgamating Company 2) with Sequent Scientific Limited ('SSL')
(Amalgamated Company)

The above amalgamation has been accounted in accordance with "Pooling of interest method" as laid
down in Appendix C - 'Business combinations of entities under common control' of Ind AS 103 notified

under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as

specified in the scheme, such that:

a. The Amalgamated Company has recorded the assets and liabilities, if any, of the Amalgamating
Company 2 vested in it pursuant to this Scheme, at the carrying values thereof and in the same
form as appearing in the consolidated financial statements of the Amalgamated Company.

b. The identity of the reserves of the Amalgamating Company 2 have been preserved and the
Amalgamated Company has recorded the reserves of the Amalgamating Company 2 in the same
form and at the carrying value as appearing in the consolidated financial statements of the
Amalgamated Company.

c. Pursuant to the amalgamation of the Amalgamating Company 2 with the Amalgamated Company,
inter-company balances, between the Amalgamated Company and the Amalgamating Company
2, if any, as appearing in the books of the Amalgamated Company has been cancelled and there
shall be no further obligation in that behalf.

d. The value of all the investments held by the Amalgamated Company in the Amalgamating Company
2 has been cancelled pursuant to amalgamation.

e. The surplus, if any arising after taking the effect of clauses (a) to (d) has been transferred to
Capital Reserve in the financial statements of the Amalgamated Company. The deficit, if any arising
after taking the effect of clauses (a) to (d) and adjustment of previously existing credit balance
in capital reserve, if any, has been first debited to Retained Earnings in the financial statements
of the Amalgamated Company to the extent of the balance available in the said account. If there
is further deficit, the amount has been debited to the Amalgamation Adjustment Deficit Account
and its nature is akin to Debit balance in Profit and Loss Account. The balance of this account has
been presented as part of reserves and a note explaining the nature shall be given in the financial
statements of the Amalgamated Company.

f I n case of any difference in accounting policy between the Amalgamating Company 2 and the

Amalgamated Company, the accounting policies followed by the Amalgamated Company has
prevailed to ensure that the financial statements reflect the financial position based on consistent
accounting policies.

g. Comparative financial information in the financial statements of the Amalgamated Company has
been restated for the accounting impact of the merger of the Amalgamating Company 2, as stated
above, as if the merger had occurred from the beginning of the comparative period presented.
However, if the entities came under common control after that date, the prior period information
has been restated only from that date.

Notes:

(i) Refer note 2(xix) under Material accounting policies for recognition and measurement of financial assets.

(ii) The fair value of the investments in equity is based on the quoted price.

(iii) Price risk- The Company's listed and non-listed equity instruments are susceptible to market price risk arising
from uncertainties about future values of the investment securities.

54.2 Financial risk management objectives and policies

The Company's principal financial liabilities comprise loans and borrowings, trade payables and other payables.
The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal
financial assets include investments, loans, trade and other receivables, cash and deposits that are derived
directly from its operations.

The Company is exposed to the following risks from its use of financial instruments:

- Credit risk

- Liquidity risk

- Market risk

54 Financial instruments (Contd)

This note presents information about the Company's exposure to each of the above risks, the Company's
objectives, policies and processes for measuring and managing risk, and the Company's management of capital.
Further quantitative disclosures are included throughout these standalone financial statements.

Risk management framework

The Company's activities makes it susceptible to various risks. The Company has taken adequate measures to
address such concerns by developing adequate systems and practices. The Company's overall risk management
program focuses on the unpredictability of markets and seeks to manage the impact of these risks on the
Company's financial performance.

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

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 limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The
Company, through its training and management standards and procedures, aims to develop a disciplined and
constructive control environment in which all employees understand their roles and obligations.

The Company has established Audit Committee and its constitution, quorum and scope is in line with the
Companies Act, 2013, provisions of Listing Agreement as entered with the Stock Exchange / Regulations.

The Audit Committee oversees how management ensures compliance of Internal Control Systems, compliance
with the Company's risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Company.

The Audit Committee is assisted in its oversight role by Internal Audit function. Internal Audit function undertakes
both regular and adhoc reviews of risk management controls and procedures, the results of which are reported
to the Audit Committee.

The Audit Committee also reviews the adequacy of the internal audit function, including its reporting structure,
coverage and frequency, to ensure that appropriate checks and balances are in place and that the internal
control systems operate effectively. Regular and comprehensive internal audits are conducted by experienced
firms of Chartered Accountants in this regard.

54.3 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 resulting in a financial loss to the Company. Credit risk arises principally
from the Company's trade receivables. Credit risk arises from cash held with banks and financial institutions,
as well as credit exposure to customers, including outstanding accounts receivable. The maximum exposure to
credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit
risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking
into account their financial position, past experience and other factors.

The Company's trade and other receivables are actively monitored to review credit worthiness of the customers
to whom credit terms are granted and also avoid significant concentrations of credit risks.

Given below is ageing of trade receivable spread by period of six months:

- The Company limits its exposure to credit risk by generally investing in liquid securities and only with
counterparties that have a good credit rating.

Information about major customer

The Company's exposure to customers is diversified and no single customer contributes to more than 10% of
total revenue and outstanding trade receivables as at 31 March 2026 and 31 March 2025.

54.4 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, as far as possible, that it will always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company's reputation.

The Company has an appropriate liquidity risk management framework for the management of short, medium and
long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast
and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company's treasury department is responsible for managing the short-term and long-term liquidity
requirements of the Company. Short-term liquidity situation is reviewed on a regular basis by the treasury
function within the Company. Long-term liquidity position is reviewed on a regular basis by the Board of Directors
and appropriate decisions are taken according to the situation.

Typically the Company ensures that it has sufficient funds on demand to meet expected operational expenses,
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances
that cannot reasonably be predicted, such as natural disasters.

54.5 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Company's income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

The Company is exposed to interest rate risk arising mainly from debt. The Company is exposed to interest rate
risk because the fair value of fixed rate borrowings and the cash flows associated with floating rate borrowings
will fluctuate with changes in interest rates.

The Company is also exposed to foreign currency risk on certain transactions that are denominated in a currency
other than the Company's functional currency; hence exposures to exchange rate fluctuations arise. Considering
the country and economic environment in which the Company operates, its operations are subject to risks arising
from fluctuations in exchange rate in those countries. The risk is that the functional currency value of cash flows
will vary as a result of movements in exchange rates.

Foreign currency Risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates
relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign
currency).

b) Foreign currency sensitivity analysis

The Company is mainly exposed to currency fluctuation of USD.

The following table details the Company's sensitivity to a 10% increase and decrease in the INR against the
relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated
monetary items and adjusts their translation at the period end for 10% change in foreign currency rates.
A positive numbers below indicates an increase in profit or equity where the INR strengthens 10% against
the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be a
comparable impact on the profit or equity, and the balance below would be negative.

54.6 Financial instrument - Risk exposure and fair value
Interest rate risk exposure

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company's exposure to the risk of changes in market
interest rates relates primarily to the company's short-term debt obligations with floating interest rates.

Interest rate risk

At the reporting date, the interest rate profile of the Company's interest-bearing financial instruments are
as follows:

55 Capital Management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company
includes within net debt, interest bearing borrowings less cash and cash equivalents.

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. As at 31 March 2026, there is no breach of covenant attached to the borrowings.

The Company manages its capital to ensure that Company will be able to continue as going concern while
maximising the return to stakeholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of net debt (offset by cash and bank balances) and total equity
of the Company.

58 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.

59 The Company does not have any charges or satisfaction which are yet to be registered with Registrar of
Companies beyond the statutory period.

60.a The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.

60.b The Company has not been declared as wilful defaulter by any bank or financial institution or government
or any government authority.

61 The Company has complied with the number of layers of subsidiaries prescribed under Section 2(87) of the
Companies Act, 2013

62 The quarterly returns or statements of current assets filed by the Company (including revised returns or
statements) with banks or financial institutions are in agreement with the books of accounts.

63 A. During the year ended 31 March 2026, the Company has not advanced or loaned or invested funds to

any other persons or entity, 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.

B. During the year ended 31 March 2026, the Company has not received any fund from any persons or
entity, 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.

64 The Company has used three accounting software for maintaining its books of account which have a
feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software, except that in case of two software, audit trail feature is not
enabled for certain changes made, if any, using privileged / administrative access rights to the underlying
database. Further, no instance of audit trail feature being tampered with was noted in respect of these
software. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory
requirements for record retention to the extent it was enabled and recorded in the respective years.

65 The standalone financial statements were approved for issue by the board of directors on 19 May 2026.

1

Director of erstwhile Viyash Life Sciences Private Limited

2

The details of interest rates, repayment and other terms are disclosed under note 21. Details of current
maturities of long-term debt are mentioned below: