2.8 Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation as a result of a past event, it is probable
that an outflow of resources embodying economic
benefits will be required to settle the obligation
and there is a reliable estimate of the amount of
the obligation. Provisions are measured at the best
estimate of the expenditure required to settle the
present obligation at the year end.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized
as a finance cost.

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 or a
reliable estimate of the amount cannot be made.

Contingent liabilities and assets are not recognised in
financial statements. A disclosure of the contingent
liability is made when there is a possible or a present
obligation that may, but probably will not, require an
outflow of resources.

2.9 Revenue Recognition
Rendering of services

The Company primarily earns revenue from Contract
research and testing services.

Revenue is recognised upon transfer of control of
promised services to customers in an amount that
reflects the consideration the Company expect to
receive in exchange for those services.

Revenue from providing services is recognised in
the accounting period in which such services are
rendered.

At contract inception, the Company assesses its
promise to transfer services to a customer to identify
separate performance obligations. The Company
applies judgment to determine whether each service
promised to a customer is capable of being distinct,
and are distinct in the context of the contract, if not,
the promised services are combined and accounted
as a single performance obligation. The Company
allocates the arrangement consideration to separately
identifiable performance obligation based on their
relative stand-alone selling price or residual method.

In case of fixed-price contracts, the customer pays
the fixed amount based on a payment schedule.
If the services rendered by the Company exceed
the payment, a contract asset is recognised. If the
payments exceed the services rendered, a contract
liability is recognised.

Revenues in excess/short of invoicing are classified as
assets/liabilities, as the case may be.

Export incentives

Export incentives are recognised when the right
to receive the credit is established in respect of
the exports made and where there is no significant
uncertainty regarding the ultimate collection of the
relevant export proceeds and utilization of export
incentives within its validity period.

Interest

Interest income is recognised when it is probable
that the economic benefits will flow to the Company
and the amount of income can be measured reliably.
Interest income is accrued on a time basis, by
reference to the principle outstanding and at the
effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset's gross carrying amount on initial recognition.
Interest income is included in other income in the
Statement of Profit and Loss.

Service Concession Arrangements

The Company constructs or upgrades infrastructure
(construction or upgrade services) used to provide
a public service and operates and maintains that
infrastructure (operation services) for a specified
period of time. These arrangements may include

Infrastructure used in a public-to-private service
concession arrangement for its entire useful life.

Under Appendix C to Ind AS 115 - Service Concession
Arrangements, these arrangements are accounted
for based on the nature of the consideration. The
intangible asset model is used to the extent that the
operator receives a right (i.e. a concessionaire) to
charge users of the public service.

The financial model is used when the operator has
an unconditional contractual right to receive cash
or other financial assets from or at the direction of
the grantor for the construction service. When the
unconditional right to receive cash covers only part of
the service, the two models are combined to account
separately for each component. If the operator
performs more than one service (i.e. construction,
upgrade services and operation services) under
a single contract or arrangement, consideration
received or receivable is allocated by reference to the
relative fair values of the service delivered, when the
amount are not separately identifiable.

The intangible asset is amortised over the shorter
of the estimated period of future economic benefits
which the intangible assets are expected to generate
or the concession period, from the date they are
available for use.

An asset carried under concession arrangements is
derecognised on disposal or when no future economic
benefits are expected from its future use or disposal.

The Company recognises a financial asset to the
extent that it has an unconditional right to receive
cash or another financial asset from or at the direction
of the grantor. In case of annuity based carriageways,
the Company recognises financial asset.

2.10 Government grants

Grants from the government are recognized at their
fair value where there is a reasonable assurance
that the grant will be received and the Company will
comply with all attached conditions.

Government grants relating to income are deferred
and recognized in the Statement of Profit and Loss
over the period necessary to match them with the
costs that they are intended to compensate and
presented within other income.

Government grants relating to the purchase of
property, plant and equipment are included in non¬
current liabilities as deferred income and are credited
to the Statement of Profit and Loss on a straight-line
basis over the expected lives of the related assets and
presented within other income.

2.11 Foreign Currency Transactions

(a) Functional and presentation currency

Items included in the financial statements are
measured using the currency of the primary
economic environment in which the entity operates
('the functional currency'). The financial statements
are presented in Indian rupee (INR), which is the
Company's functional and presentation currency.

(b) Transactions and balances

On initial recognition, all foreign currency transactions
are recorded by applying to the foreign currency
amount the exchange rate between the functional
currency and the foreign currency at the date of the
transaction. Gains/Losses arising out of fluctuation in
foreign exchange rate between the transaction date
and settlement date are recognised in the Statement
of Profit and Loss.

All monetary assets and liabilities in foreign currencies
are restated at the year end at the exchange
rate prevailing at the year end and the exchange
differences are recognised in the Statement of Profit
and Loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

2.12 Retirement and other Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the year in
which the employees render the related service are
recognized in respect of employees' services up to
the end of the year and are measured at the amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current employee
benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident
fund is made to the regulatory authorities, where the
Company has no further obligations. Such benefits
are classified as Defined Contribution Schemes as
the Company does not carry any further obligations,
apart from the contributions made on a monthly
basis which are charged to the Statement of Profit
and Loss.

Employee's State Insurance Scheme: Contribution
towards employees' state insurance scheme is made

to the regulatory authorities, where the Company has
no further obligations. Such benefits are classified as
Defined Contribution Schemes as the Company does
not carry any further obligations, apart from the
contributions made on a monthly basis which are
charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

The Company has gratuity as defined benefit plan
where the amount that an employee will receive on
retirement is defined by reference to the employee's
length of service and final salary. The Company has
subscribed to gratuity scheme of Life Insurance
Corporation of India ('LIC') to which the Company
makes periodic Funding. Under the said policy, the
eligible employees are entitled for gratuity upon their
resignation, retirement, incapitation, termination or
in the event of death in lump sum after deduction
of necessary taxes, as applicable. The liability in
respect of defined benefit plans is calculated using
the projected unit credit method consistent with
the advice of qualified actuaries. The present value
of the defined benefit obligation is determined by
discounting the estimated future cash outflows
using interest rates of high quality corporate bonds
that are denominated in the currency in which the
benefits will be paid, and that have terms of maturity
approximating to the terms of the related defined
benefit obligation.

The current service cost of the defined benefit plan,
recognised in the statement of profit and loss under
employee benefit expense, reflects the increase
in the defined benefit obligation resulting from
employee service in the current year, benefit changes,
curtailments and settlements.

Past Service costs are recognised in statement of
profit and loss in the period of plan amendment.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and fair value of plan assets. The
cost is included in the employee benefit expenses
in the statement of profit and loss. Actuarial gains
and losses arising from experience adjustments
and changes in actuarial assumptions are charged
or credited to other comprehensive income in the
period in which they arise.

Compensated Absences (Leave Encashment): The
Company's current policy permits employees to
accumulate and carry forward a portion of their
unutilised compensated absences and utilise/
encash them in future periods in accordance with
the terms of such policies. The Company measures
the expected cost of accumulated absences as the
additional amount that the Company incurs as a result

of the unused entitlements that has accumulated at
the balance sheet date and charge to Statement of
Profit and loss. The Company's liability is actuarially
determined (using the Projected Unit Credit method)
at the end of each year. Such measurement is based
on actuarial valuation at the balance sheet date
carried out by a qualified actuary. Actuarial losses/
gains are recognized in the statement of profit and
loss in the year in which they arise.

(c) Share-based payment arrangements

The stock options granted to employees in terms of
the Employee Stock Options Schemes, are measured
at the fair value of the options at the grant date. The
fair value of the options is treated as discount and
accounted as employee compensation cost over the
vesting period on a straight-line basis. The amount
recognised as expense in each year is arrived at
based on the number of grants expected to vest. If a
grant lapses after the vesting period, the cumulative
discount recognised as expense in respect of such
grant is transferred to the general reserve within
equity.

2.13 Leases (as a lessee)

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as
those of property, plant and equipment. In addition,
the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain re¬
measurements of the lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot
be readily determined, Company's incremental
borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the
lease liability comprise the following: -

• Fixed payments, including in-substance fixed
payments;

• Variable lease payments that depend on an index
or a rate, initially measured using the index or
rate as at the commencement date;

• Amounts expected to be payable under a
residual value guarantee; and

• The exercise price under a purchase option that
the Company is reasonably certain to exercise,
lease payments in an optional renewal period if
the Company is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Company is
reasonably certain not to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the Company's estimate of the amount expected
to be payable under a residual value guarantee, or if
Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way,
a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in the
Statement of Profit and Loss if the carrying amount of
the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do
not meet the definition of investment property in
'property, plant and equipment' and lease liabilities
in 'loans and borrowings' in the statement of financial
position.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-
use assets and lease liabilities for short term leases
of real estate properties that have a lease term of 12
months. The Company recognises the lease payments
associated with these leases as an expense on a
straight-line basis over the lease term.

2.14 Borrowing Costs

Borrowing costs consist of interest, ancillary costs
and other costs in connection with the borrowing of
funds and exchange differences arising from foreign
currency borrowings to the extent they are regarded
as an adjustment to interest costs.

Borrowing costs attributable to acquisition and/
or construction of qualifying assets are capitalised
as a part of the cost of such asset, up to the date
such assets are ready for their intended use. Other
borrowing costs are charged to the Statement of
Profit and Loss.

2.15 Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. Earnings
considered in ascertaining the Company's earnings
per share is the net profit or loss for the year after
deducting preference dividends and any attributable
tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for
all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares, that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year is
adjusted for the effects of all dilutive potential equity
shares.

2.16 Dividend Distribution

The Company recognizes a liability to make the
payment of dividend to owners of equity, 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.

2.17 Cash Flows

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payment and items of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

2.18 Segment Reporting

The management has assessed and identified
the reportable segments in accordance with the
requirements of Ind AS 108 'Operating Segment'
and the Company has only one reportable segment
namely "Contract Research and Testing Services"

2.19 Cash and cash equivalents

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

(b) Deferred Taxes

The assessment of the probability of future taxable
profit in which deferred tax assets can be utilised is
based on the Company's latest approved forecast,
which is adjusted for significant non-taxable profit and
expenses and specific limits to the use of any unused
tax loss or credit. The tax rules in the jurisdiction in
which the Company operates are also carefully taken
into consideration. If a positive forecast of taxable
profit indicates the probable use of a deferred tax
asset, especially when it can be utilised without a time
limit, that deferred tax asset is usually recognised in
full.

(c) Defined benefit plans (gratuity benefits and leave
encashment)

The cost of the defined benefit plans such as gratuity
and leave encashment are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future due to changing market
and economic conditions, regulatory events, judicial
rulings, higher or lower withdrawal rates, or longer or
shorter participant life spans.

The assumptions include determination of the
discount rate, salary growth rate, mortality rate,
retirement age and attrition rate. Due to the
complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each year end."

(d) Fair value of financial instruments

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.

(e) Impairment of financial assets

The impairment provisions of financial assets are
based on assumptions about risk of default and
expected loss rates. the Company uses judgment in
making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

(f) Impairment of non-financial assets

An impairment loss is recognised for the amount by
which an asset's or cash-generating unit's carrying
amount exceeds its recoverable amount to determine
the recoverable amount, management estimates
expected future cash flows from each asset or cash
generating unit and determines a suitable interest rate
in order to calculate the present value of those cash
flows. In the process of measuring expected future
cash flows, management makes assumptions about
future operating results. These assumptions relate to
future events and circumstances. The actual results
may vary, and may cause significant adjustments to
the Company's assets.

In most cases, determining the applicable discount
rate involves estimating the appropriate adjustment
to market risk and the appropriate adjustment to
asset-specific risk factors."

(g) Research and Developments Costs

Management monitors progress of internal research
and development projects by using a project
management system. Significant judgment is required
in distinguishing research from the development
phase. Development costs are recognised as an
asset when all the criteria are met, whereas research
costs are expensed as incurred. Management also
monitors whether the recognition requirements
for development costs continue to be met. This
is necessary due to inherent uncertainty in the
economic success of any product development.

(h) Property, Plant and Equipment

Depreciation methods, useful lives and residual
values are reviewed at each financial year end and
adjusted prospectively, as appropriate.

(i) Current income taxes

Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment can
involve complex issues, which can only be resolved
over extended time periods. The recognition of taxes
that are subject to certain legal or economic limits or
uncertainties is assessed individually by management
based on the specific facts and circumstances.

(j) Provision for expected credit losses (ECL) of trade
receivables and contract assets

The Company uses a provision matrix to calculate
ECLs for trade receivables and contract assets. The
provision rates are based on days past due across
all divisions. The provision matrix is initially based
on the Company's historical observed default rates.

The Company will calibrate the matrix to adjust the
historical credit loss experience with forward-looking
information. At every reporting date, the historical
observed default rates are updated and changes
in the forward-looking estimates are analysed. The
assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast
economic conditions. The Company's historical credit
loss experience and forecast of economic conditions
may also not be representative of customer's actual
default in the future.

(k) Significant judgements

In the process of applying the Company's accounting
policies, the management has made the following
judgements, which have the most significant effect on
the amounts recognized in the financial statements

Determination of applicability of Appendix C of
Service Concession Arrangement ('SCA'), under Ind
AS - 115 'Revenue from contracts with customers'

The Company, has entered into concession agreement
with Food Safety and Standards Authority of India
('FSSAI') to setup, operate and transfer (SOT) a National
food Testing Laboratory (NFL) in JNPT,Mumbai. The
management of the Company conducted detailed

Note:

(a) Terms and conditions of secured rupee term loans and
nature of security

1. i) The working capital term loan from Axis Bank

included in the Rupee Term loan aggregating to R Nil
as at March 31, 2025 (Previous Year R 7.30 Million)
(Sanctioned limit of R 23.90 Million in FY 2020-21)
under emergency Credit Line Guarantee Scheme
is secured by extension of charge (second charge)
on existing primary and collateral security and
guaranteed by NCGTC.

ii) The above mentioned working capital term loan
carries interest at the rate of 9.25% fixed {Prev
Year 9.25%} and is repayable in 36 equal monthly
installments commencing from March, 2022.

2. i) The Rupee term loan from Axis Bank aggregating to

R 8.37 Million as at March 31,2025 (Previous year
40.31 Millions) Sanctioned limit of R 262.50 Million in
FY 2023-24 is secured by way of first charge on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and
future) of the company.

ii) The above mentioned rupee term loan carries interest
at the rate of 8% (Linked to REPO) and is repayable in
16 quarterly instalments with a 6 months moratorium
period from the date of first disbursement.

3. i) The Rupee Term Loan from Axis Bank aggregating to

R 25.00 Millions as on 31.03.2025 (Sanctioned limit
of R 25.00 Millions in FY 2024-25) is secured by way
of 1st charge on assets created out of term loan This
loan is also secured by second charge on Cuirrent
Assets (both present and future) of the Company.

ii) The above mentioned rupee term loan carries interest
of 9.00 % (Linked to REPO) and is repayable in 16
qurterly instalments with 12 months moratorium
period from the date of 1^st disbursement."

(b) Terms and conditions of secured foreign currency term
loans and nature of security

1. The foreign currency term loan availed from Axis
Bank taken for General Capex aggregating to
R 22.12 Million (equivalent to USD 0.2585 Million) as
at March 31, 2025 (Sanctioned limit of R 75.00 Million
in FY 2020-21 and subsequently converted into FCTL
of USD 1.034 Million) (Previous Year R 38.81 Million)
is secured by way of first charge to bank on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and

future) of the company at pari passu basis with HDFC
Bank Ltd. The loan is covered by collateral security
by way of equitable mortgage of property bearing
Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally,
Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan
carries interest at 12 Months SOFR 275 bps plus
1% per annum (mark up fee upfront) and repayable
in 20 equal quarterly installments commencing from
March 2022.

2. The foreign currency term loan availed from Axis
Bank taken for E&E Project aggregating to R 29.64
Million(equivalent to USD 0.3463 Million) as at March
31, 2025 (sanctioned limit of R 150.00 Million in FY
2020-21 and subsequently converted into FCTL of
USD 1.1775 Million) (Previous Year R 51.97 Million)
secured by way of first charge to bank on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and
future) of the company at pari passu basis with HDFC
Bank Ltd. The loan is covered by collateral security
by way of equitable mortgage of property bearing
Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally,
Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan
carries interest at 12 Months SOFR 275 bps plus 1%
per annum(markup fee upfront) and repayable in
20 quarterly installments commencing from March,
2022.

(c) Unsecured loans from NBFC:

1. The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March 31,
2025 (Sanctioned limit of R 8.67 Million in FY 2019¬
20) carries at NIL interest and is repayable in 20
quarterly installments commencing from September,

2019. (Previous Year R 0.32 Million)

2) The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March 31,
2025 (Sanctioned limit of R 9.69 Million in FY 2019¬
20) carries at NIL interest and is repayable in 20
quarterly installments commencing from January,

2020. (Previous Year R 1.01 Million)

3) The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March, 31,
2025 (Sanctioned limit of R 4.54 Million in FY 2020-21)
carries an interest at the rate of 5.00% as at March
31, 2024 and is repayable in 20 quarterly installments
commencing from September, 2019. (Previous Year
R 0.73 Million)

(e) Details of working capital limits from banks:

1. The working capital facility from Axis bank amounting to ^ Nil as at March 31, 2025 (sanctioned limit ^ 150 Million) carries
an interest of 3 months MCLR and is secured by way of first paripassu charge on entire current assets of the company
(both present and future) along with HDFC Bank ltd.

2. The working capital facility from HDFC bank amounting to ^ Nil as at March 31, 2025 (sanctioned limit ^ 150 Million)
carries an interest of REPO rate plus spread of 3%and is secured by way of first paripassu charge on entire current assets
of the company(both present and future) along with Axis bank ltd.

3. First paripassu charge to HDFC bank on Industrial land and building situated at Plot No 141/2 and 142, IDA, Phase -II,
Cherlapally, Hyderabad- 500051 as collateral security.

4. The working capital facility from HDFC bank amounting to ^ Nil as at March 31, 2025 (Sanctioned limit ^ 9 Million)
carries an interest of 3 Months T Bill plus spread of 2.12% and is secured by way of primary charge on book debts and
fixed deposits of the company and this working capital facility is closed during the year and No Due Certificate has been
received from the bank before March 31, 2025.

(f) There were no defaults as on current balance sheet date and previous year In repayment of all the above borrowings and
interest thereon

(g) The company has used the borrowings from Banks and Financial Institutions for the specific purpose for which it was taken at
the Balance sheet date.

(h) Company's borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the
company with Banks are in agreement with the books of account.

(i) Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender.

(j) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period in respect of the
above borrowings.

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

The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair
values, due to their short-term nature. The difference between carrying amounts and fair values of bank deposits, other financial
assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years
presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value. For financial assets
measured at fair values, the carrying amounts are equal to the fair values.

32 Financial risk management objectives and policies

The Company's activities expose it to a variety of financial risks, including market risks, credit risks and liquidity risks. The
Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance.
The Company's risk management assessment and policies and processes are established to identify and analyse the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company's activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company's risk
assessment and management policies and processes. It is the Company's policy that no trading in derivatives for speculative
purposes may be undertaken.

(i) 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. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

a) 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) in
United States Dollar ('USD'), Euro ('EUR'), Great Britain Pound ('GBP'), Canadian dollar ('CAD') and borrowings in
USD.

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 fixed rate borrowings are carried at amortised cost and hence are not
subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates. Further, the Company's investments in deposits is with banks and
electricity authorities and therefore do not expose the Company to significant interest rates risk. The Company's main
interest rate risk arises from borrowings with variable rates, which expose it to cash flow interest rate risk.

The Company does not have any investments which are classified in the balance sheet either as fair value through OCI or
at fair value through profit or loss. Hence, the Company is not exposed to any price risk.
ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company's established policy, procedures and
control relating to customer credit risk management. The credit quality of a customer is assessed based on an extensive
credit rating scorecard, internal evaluation and individual credit limits. The Company evaluates the concentration of risk
with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in
largely independent markets.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due. The expected loss rates are based on the payment profiles of sales over the last 12 quarters before
the reporting date and the corresponding historical credit losses experienced at the end of each quarter. The historical
loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability
of the customers to settle the receivables. The expected credit loss assessment from customers as at March 31, 2025 are
as follows:

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit

obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

below:

(a) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to current investment patterns
in the economy; if plan assets underperform this yield, this will create a deficit. The plan asset investments are subject
to interest rate risk. The Company has a risk management strategy where the aggregate amount of risk exposure is
maintained at a fixed range. Any deviations from the range are corrected by rebalancing the investments. The Company
intends to maintain the investment pattern in the continuing years.

(b) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an
increase in the value of the plans' bond holdings.

(c) Life expectancy: The defined benefit obligation is to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.

Ihe weighted average duration of the defined benefit plan obligation at the end of the reporting period is 4.86 years (31 March
2024: 4.85 years).

Expected Contribution to the plan for the next annual period ^ 17.53 millions.

(ii) The Company provides for accumulation of compensated absences by certain categories of its employees. These employees
can carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods as per the
Company's policy. The Company records a liability for compensated absences in the period in which the employee renders the
services that increases this entitlement.

39. Details of discontinued operations:

The company vide Business Transfer Agreement (BTA) dated August 30, 2024 entered into with Thyrocare Technologies Limited
(Buyer) for sale and transfer of its Diagnostic and Pathological services business (Business) under slump sale, for a consideration
of ^ 70 million, transferred the said Business to the buyer on October 11, 2024. In addition to the above consideration, the
company through the Brand and Trademarks License Agreement (BTLA) with the buyer, will receive a Brand Royalty fee of 5%
of the Revenue from this business over a period of at least 2 years from the date of actual transfer of business.

40 Segment Reporting

The Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as required by Ind
AS 108 Operating Segments. The Company is in the business of providing contract research and testing services. The Managing
Director reviews the operations of the Company as one operating segment taking into account the nature of the business, the
organization structure, internal reporting structure and risk and rewards. Hence no separate segment information has been
furnished herewith.

41 Capital management and ratios

The Company's objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure
to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the following gearing ratio i.e. Net debt (total borrowings net of cash and cash
equivalents) divided by total equity (as shown in the balance sheet):

42 The Company had entered into a Public Private Partnership
(PPP) agreement with Food Safety and Standards Authority
of India (FSSAI) on June 29, 2021 to setup, operate and
transfer (SOT) a National food Testing Laboratory (NFL) in
JNPT,Mumbai. In accordance with the provisions of Ind AS
115, this arrangement has been considered as a "Service
Concessionaire Arrangement" (SCA) and accordingly,
revenue and costs are allocatable between those relating
to lab setup services and those relating to operation and
maintenance services. Further, the Company has acquired
the right to charge the customer for the services to be
rendered which has been assessed as an intangible asset.

Consequently, the amount of revenues from operations
and lab setup expenses includes ^ 4.3 million for year
ended March 31, 2025 and ^ 2.36 million for year ended
March 31, 2024 , respectively representing the revenues
relating to lab setup services provided under SCA, the
costs of fulfilling the contract and the right to charge the
customer for the services to be rendered, respectively.

43 Pursuant to the Scheme of Amalgamation ("the Scheme")
under Section 230 to 232 of the Companies Act, 2013
sanctioned by the Hon'ble National Company Law
Tribunal, Hyderabad bench vide order dated 23rd January
2025, EMTAC Laboratories Private Limited (EMTAC),
a wholly owned Subsidiary of the Company has been
amalgamated with the Company on the appointed date,
i.e., 1^st April, 2024. In terms of the Scheme, the assets and
liabilities of EMTAC have been vested with the Company
and have been accounted in accordance with the "Pooling
of Interest Method" as laid down in Appendix - C, of
Indian Accounting Standard i.e, Ind. AS 103 - Business
Combinations. Accordingly, the comparative financial
information for the year ended 31^st March, 2024 have
been restated by duly including the figures of the said
subsidiary.

44 Disclosure U/s.186(4) of the Companies Act, 2013. During the year under review, The Company has not given any loans, made

Investment, given Guarantee, provided Security to any others.

45 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries")
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 Other Statutory Information

(i) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the
Companies Act, 1956.

(ii) The Company does not have any 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

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

(iv) No Proceeding has been initiated or pending against the Company under the Benami Transactions (Prohibition) Act, 1988
and the rules made thereunder.

(v) The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the
Companies (Restriction on number of layers) Rules 2017.

(vi) The Company has not granted loans or advances in the nature of loans to the promoters, directors or KMPs and the
related parties as defined in the companies act, 2013 either severally or jointly with any other person that are repayable
on demand or without specifying terms or period of repayment.

47 Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year classification

and disclosure.

Per our report of even date attached.

For Gattamaneni & Co For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 009303S Dr. S. P. Vasireddi Harita Vasireddi Harriman Vungal

Executive Chairman Managing Director ED-Operations

DIN :00242288 DIN:00242512 DIN :00242621

G. Srinivasa Rao G Purnachandra Rao K. Siva Rama Krishna Sujani Vasireddi

Partner Director Chief Financial Officer Company Secretary

Membership No. 210535 DIN : 00876934

Place: Hyderabad Place: Hyderabad

Date : April 28, 2025 Date : April 28, 2025