Notes to Accounts of Bharat Parenterals Ltd.

Mar 31, 2025

(i ) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are
(a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair
value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An
explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

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

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

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting
period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis(if any).

51 FINANCIAL RISK MANAGEMENT

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

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company''s activities.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments.
Credit risk is managed through continuous monitoring of receivables and follow up for overdues.

( i ) investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties
that have a good credit rating. The Company does not expect any losses from non-performance by these counter
parties, and does not have any significant concentration of exposures to specific industry sector or specific country
risks.

(ii) Trade Receivables

The Company has used Expected Credit Loss (ECL) model for assessing the impairment loss. For the purpose, the
Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into
account external and internal risk factors and historical data to credit losses from various customers.

(B) 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 responsibility for liquidity risk management rests
with the board of directors, which has established an appropriate liquidity risk management framework for the management
of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their
contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months
equal their carrying balances as the impact of discounting is not significant.

(c) Market risk

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in mutual funds. The price risk arises due to
uncertainties about the future market values of these investments. The above instruments risk are arises due to
uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies.

(ii) Foreign Currency 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 risk is measured through a forecast of foreign currency for the Company''s operations.

CAPITAL MANAGEMENT
52 RISK MANAGEMENT

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves
attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders
and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s
objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its
business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The
Company funds its operation through internal accruals and through internal and external borrowings. The management and
Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

53 OTHER DISCLOSURES AS REQUIRED AS PER SCHEDULE III OF THE COMPANIES ACT, 2013

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

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

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

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that The Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

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

vi) The Company do not have any such transaction which is not recorded in the books of accounts and that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act, 1961)

vii) The company holds all the title deeds of immovable property in its name.

viii) The company is not declared as willful defaulter by any bank or financial Institution or other lender.

ix) There is no Scheme of Arrangement approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.

x) Relationship with struck off companies

There are no relation with any struck off companies this year.

54 INFORMATION ON DIVIDEND FOR THE YEAR ENDED 31^st MARCH, 2025

Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the
Board of Director for issue are not recognised as a liability at the balance sheet date.

The Board of Director recommended final dividend of Rs 1.00 per equity share for the financial year ended on 31^st March,
2025. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year
Rs. 1 per equity share).

55 The Previous Year''s figures haven been regrouped/reclassified, where necessary to confirm to current year''s classification.

56 The financial statements has been prepared in absolute numbers and then converted into Lakhs to meet the presentation
requirement as per Companies Act, 2013 accordingly the variance on account of decimals rounding-off may exist.

Mar 31, 2024

(a) The above Term loans are secured by first charge by way of hypothecation of all the movable machinery financed or to be financed under the said term loans by the respective banks. The above Term Loan also includes hypothecation of entire Plant & Machinery (excluding Plant & Machinery covered under Primary Security] of the Company Situated at Survey No. 144 & 146, Jarod Samlaya Roadi Haripura Village, Savli, Vadodara (Both Present & Future].

Interest rate on term loan is 1Y MCLR (Presendy 1Y MCLR is 8.60%) 0.60% p.a. i.e. 9.20% p.a. The Loan is repayable in 60 Equated monthly installment of Rs. 18.75 lakhs.

Interest rate on ECLGS loan is Repo 2.4% presently 8.9% p.a. The Loan is repayable in 36 Equated monthly installment after the end of 24 months of moratorium.

Note: (i) The above loan exclusively hypothecated against the entire current asset and entire movable fixed assets including plant and machinery [Present & Future) of the company, Further, the above loan is guaranteed by Mr, Bharat Desai & Mrs. Hima Desai. Rate of interest on the above cash credit facility ranges from 8% to 8.74 % P.a.

Note: (ii) The company has borrowings from banks secured against the current asset and quarterly returns filled for the same with the banks are in agreement with the books of accounts of the company.

35 Earnings per share (EPS) Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders 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 equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

36 Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined con trlbution plans:

The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employeeâs salary.

The company recognised Rs. 82.03 lakhs (P.Y : Rs. 75.21 lakhs] for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes contributions to Cratuity Fund managed by ICICI Prudential life insurance, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i] On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death In service: As per the provisions of Payment of Gratuity Act. 1972 without any vesting period.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31st March, 2024.

Defined benefit plans- As per actuarial valuation

38	Contingent Liabilities
	Sr No	Particulars	As at 31 March, 2024	As at 31 March, 2023
	(i)	Contingent liabilities
		a) Liabilities Disputed In appeals - Income Tax - Service Tax	06.14 10.75	86.14 10.75
		b) Letter of Credit and Bank Guarantees	2,136.91	2,571.84
		Total	2,233.81	2,668.73
		Commitments
		Estimated amount of contracts remaining to be executed on capital account & not provided for: -Tangible Assets	333.92	B1.71

39 Disclosure pursuant to leases As Lessee:

Short term Leases:

The Company has obtained premises for its business operations under operating lease or leave and license agreements. These are not non-caneellable and are renewable by mutual consenton mutually agreeable terms.

Lease payments are recognised In statement of Profit and Loss under the head "Rent Expense'' in note no 33.

40 Disclosure related to Micro and Small Enterprises

On the basis of confirmation obtained from the supplier who have registered themselves under the Micro, Small and Medium Enterprises Development Art, 2006 (MSMED Act 2006) and based on the information available with the company, the following are the details:

42 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects as specified in Schedule V]I of the Companies Act; 2013.nie details of amount required to be spent and actual expenses spent during the year is as under:

(v) The company has charged the Interest of Rs. 264.37 Lakhs (P.Y. 119.15 lakhs) from Innoxel Llfesriences Private Limited & Rs, 122.54 Lakhs (P.Y. 29.78) from Varenyam Biolifesriences Private Limited, The rate of interest range from 6% - 7 % P.a. The above loan given for a tenure of upto 9 years from the commencement of loan.

44 Operating Segments

The activities of the Company relate co only one segment Le. Manufacturing of Pharmaceuticals Formulations Geographical Information

The analysis of geographical information Is based on the geographical location of the customers. The geographical Information considered for disclosure are as follows:

(II Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial Instruments that are (a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments Into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level It Level 1 hierarchy includes financial instruments measured using quoted prices.

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

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

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers inm and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar Instruments

- the fair value of the remaining financial instruments Is determined using discounted analysis (if any).

51 Financial Risk Management

The Companyâs Board of Directors has overall responsibility for the establishment and oversight of the Companyâs 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. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments. Credit risk is managed through continuous monitoring of receivables and follow up for overdues.

(i) Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industrysectororspecificcountryrisks,

(ii) Trade Receivables

The Company has used Expected Credit Loss (ECL] model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount The provision matrix takes into account external and internal risk factors and historical data tD credit losses from various customers.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecas and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscouuted cash flows. Balances due within 12 months equal their carrying balances as the impact o discounting is not significant

The company is mainly exposed to the price risk due to its investments in securities. The price risk arises due to uncertainties about the future market values these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies.

[ill Foreign Currency Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Companyâs 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 risk is measured through a forecast of foreign currency for the Company''s operations.

The Holding Companyâs exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee, are as follows:

Capital Management 52 Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of th Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or it business requirements. The Companyâs objectives are ta safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support i'' business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operatic through internal accruals. The management and Board of Directors monitor the re turn on capital as well as the level of dividends to shareholders.

53 Share-based payments

(a) The share-based payment plan is an employee option plan. The options are equity settled options.

At the annual genera) meeting of company held on 30th September, 2020, member of the company passed the special resolution for introducing "Bharat Parenterals Employee Stock Option Plan 2020" of 2,00,000 options for the benefit of the employee of the company. The resolution also accorded approval for the Board of Directors, to formulate the Scheme as per broad parameters outlined in the resolution. Pursuant to Scheme framed, the company has granted options to eligible employees of the company under plan. Each options entitle for one equily share. The company granted 90,000 Stock Option to its employees by virtue of grant letter dated 12th, November, 2020 and 17th, June, 2022. The vesting conditions of which are as outlined in their grant letter. Necessary impart have been considered. Further, the company has not yet granted the 1,10,000 Stock Option to its employees. The options are exercisable at an exercise price of Rs. 99 per share (Face Value of Rs.10 per share).

The company has charged to statement of Profit and Loss as employee benefit expenses Rs. 13.96 Lakhs (P.Y. 53.09 Lakhs) by creating an Employee stock option reserve which is grouped under the head ''Other Equity¹.

54 Other disclosures

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

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

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

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company have not received any fund from any person (s) or entity(ies), including foreign entities [Funding Party) with the understanding (whether recorded in writing or otherwise) that The Company shall:

(a) directly or Indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries] or

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

(vi) The Company do not have any such transaction which is not recorded in the books of accounts and that has been surrendered or disclosed as income during the year in the tax assessmerus under the Income Tax Act 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act 1961)

(vii) The company holds all the title deeds of immovable property in its name,

(viii) The company is not declared as willful defaulter by any bank or financial Institution or other lender.

(ix) There is no Scheme of Arrangement approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act 2013.

..T.'' ..

5 S The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 22nd May,2024. The financial statements as approved by

the Board of Directors are subject to final approval by its Shareholders.

56 Information on Dividend for the year ended 31st March, Z024

The Holding company proposed or declared dividend after the balance sheet date but before the financial statements have been approved by the Board of Director for issue are not recognised as a liability at the balance sheet date.

The Board of Director recommended final dividend of Rs 1.00 per equity share for the financial year ended on 31st March, 2024. The payment Is subject to approval of share holder in ensuing Annual General Meeting of the Company. [Previous year Rs. 0.73 per equity share).

Mar 31, 2023

a) Terms & Rights attached to each class of shares;

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. In the event of the liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

18.1 The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve is not reclassified subsequently to the Statement of Profit and Loss.

18.2 Employee Stock Option Reserve is used to recognise the fair value of equity settled share based payment transactions.

18.3 Security premium reserve is used to record the premiun on issue of equity share under ESOP scheme. The reserve is utilised in accordance with the proviosion of the Companies Act, 2013

(i) The above Term loans are secured by first charge by way of hypothecation of all the movable machinery financed or to b financed under the said term loans by the respective banks. The above Term Loan also includes hypothecation of entire Plant & Machinery (excluding Plant & Machinery covered under Primary Security) of the Company Situated at Survey No. 144 & 146 Jarod Samlaya Road, Haripura Village, Savli, Vadodara (Both Present & Future).

Interest rate on term loan is 1 Y MCLR (Presently 1 Y MCLR is 7.40%) 0.75% p.a. i.e. 8.15% p.a. The Loan is repayble in 60 Equated monthly installment of Rs. 18.75 lakhs.

Interest rate on ECLGS loan is Repo 2.4% presently 6.4% p.a. The Loan is repayble in 36 Equated monthly installment after the end of 24 months of moratorium.

Note: (i) The above loan exclusively hypothecated against the entire current asset and entire movable fixed assets including plant and machinery (Present & Future) of the company, Further, the above loan is guaranteed by Mr. Bharat Desai & Mr. Hima Desai. Rate of interest on the above cash credit facility ranges from 8% to 8.74 % P.a.

Note: (ii) The company has borrowings from banks secured against the current asset and quarterly returns filled for the same with the banks are in agreement with the books of accounts of the company.

35 Earnings per share (EPS)

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

36 Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined contribution plans:

The company recognised Rs. 75.21 lakhs (P.Y : Rs. 66.75 lakhs ) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes contributions to Gratuity Fund managed by ICICI Prudential life insurance, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31st March, 2023.

39 Disclosure pursuant to leases As Lessee:

Short term Leases:

The Company has obtained premises for its business operations under operating lease or leave and license agreements. These are not non-cancellable and are renewable by mutual consent on mutually agreeable terms.

44 Operating Segments

The activities of the Company relate to only one segment i.e. Manufacturing of Pharmaceuticals Formulations

Property, Plant & Equipment by Geographical Locations

The Company has common PPE for producing goods for domestic as well as overseas market. There are no PPE situated outside India. Hence, additional segment-wise information for PPE / additions to PPE has not been furnished.

45 Expenditure on Formulation and Development (R&D)

The Company''s F&D center as certified by Department of Scientific and Industrial Research function at survey No. 144/146 Jarod - Samlaya road, Village Haripura, Vadodara

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Mutual Fund that have quoted price. These are valued using the closing NAV.

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

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

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis(if any).

⁵¹ Financial Risk Management

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

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

^(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments. Credit risk is managed through continuous monitoring of receivables and follow up for overdues.

(i) Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

(ii) Trade Receivables

The Company has used Expected Credit Loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data to credit losses from various customers.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

^(C) Market risk

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in mutual funds. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies.

(ii) Foreign Currency 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 risk is measured through a forecast of foreign currency for the Company''s operations.

52 Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

53 At the annual general meeting of company held on 30th September, 2020, member of the company passed the special resolution for introducing "Bharat Parenterals Employee Stock Option Plan 2020" of 2,00,000 options for the benefit of the employee of the company. The resolution also accorded approval for the Board of Directors, to formulate the Scheme as per broad parameters outlined in the resolution. Pursuant to Scheme framed, the company has granted options to eligible employees of the company under plan. Each options entitle for one equity share. The company granted 45,000 Stock Option to its employees by virtue of grant letter dated 12th, November, 2 02 0. The vesting conditions of which are as outlined in their grant letter. Necessary impact have been considered. The options are exercisable at an exercise price of Rs. 99 per share (Face Value of Rs.10 per share)

The company has alloted the above above option to its employee as on 04th January,202 2 at a exercise price of Rs. 99 per share having face value of Rs.10 each.

54 During the year company has acquired additional 3,08,80,498 Nos. of quity shares resulting into 51% equity share capital in Innoxel Lifesciences Private Limtied ("ILPL").

55 During the year, the company has acquired 60% equity share capital in Varenyam Biolifesciences Private ("VBPL"). On such acquisition, VBPL has become subsidiary of the company with effect from 28th June, 2022.

56 Other disclosures

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

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

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

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: 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 provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that The Company shall:

vi) The Company do not have any such transaction which is not recorded in the books of accounts and that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

vii) The company holds all the title deeds of immovable property in its name.

viii) The company is not declared as willful defaulter by any bank or financial Institution or other lender.

ix) There is no Scheme of Arrangement approved by the Competent Authority in terms of sections 2 30 to 237 of the Companies Act, 2013.

58 The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 20th May,2 02 3. The financial statements as approved by the Board of Directors are subject to final approval by its Shareholders.

59 Information on Dividend for the year ended 31st March, 2023

Dividends proposed or declared after the balance sheet date but before the financial statements have been approved by the Board of Director for issue are not recognised as a liability at the balance sheet date.

The Board of Director recommended final dividend of Rs 0.75 per equity share for the financial year ended on 31st March, 202 3. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year Rs. Nil per equity share).

60 The figures of previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

The accompanying notes are an integral part of the financial statements.

As per our Report of even date

Mar 31, 2018

1. COMPANY OVERVIEW AND SIGNIFICANT ACCOUNTING POLICIES:

1.1 Description of Business

BHARAT PARENTERALS LIMITED (âthe Companyâ), incorporated in the year 1986 is Public Limited Company and engaged in the business of Manufacturing of Pharmaceutical Formulations.

1.2 Basis of Preparation of Financial Statements

i. Compliance with Ind AS

The financial statements comply in all material aspects with Indian Accounting Standards (âInd ASâ) notified under section 133 of the Companies Act, 2013 (âthe Actâ), Companies (Indian Accounting Standards) Rules, 2015 as amended by Companies (Indian Accounting Standards) (Amendment) Rules, 2016 and other relevant provisions of the Act as applicable.

The financial statements up to year ended March 31, 2017 were prepared in accordance with the Accounting Standards notified under section 133 of the Act read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (âIndian GAAPâ) and other relevant provisions of the Act as applicable.

These financial statements are the Company''s first Ind AS financial statements and are covered by Ind AS 101-First time Adoption of Indian Accounting Standards. The transition to Ind AS has been carried out from the accounting principles generally accepted in India (âIndian GAAPâ) which is considered as the ''Previous GAAP'' for purposes of Ind AS 101. An explanation of how the transition to Ind AS has affected the Company''s financial position, financial performance and cash flows is provided in Note 44 of the financial statement.

ii. Historical cost convention

The financial statements have been prepared on a historical cost basis, except the following:

- Certain financial assets and liabilities that are measured at fair value;

- Defined benefit plans - plan assets measured at fair value.

iii. Functional and presentation currency

These financial statements are presented in Indian Rupees, which is the Company''s functional currency, and all values are rounded to the nearest lakhs, except otherwise indicated.

iv. Composition of Financial Statements

The financial statements comprise:

- Balance Sheet

- Statement of Profit and Loss

- Statement ofChanges in Equity

- Statement of Cash Flow

- Notes to Financial Statements

Terms & Rights attached to each class of shares;

(i) The above Term loans are secured by first charge by way of hypothecation of all the movable machinery financed or to be financed under the said term loans by the respective banks. The above Term Loan also includes hypothecation of entire Plant & Machinery (excluding Plant & Machinery covered under Primary Security) of the Company Situated at Survey No. 144 & 146, Jarod Samlaya Road, Haripura Village, Savli, Vadodara (Both Present & Future).

*With effect from 1st July, 2017 Goods and Service Tax (GST) was introduced and hence, the revenue from operations for the period 01.07.17 to 31.03.18 is net of GST. However, the revenue from operations for the period of 01.04.17 to 30.06.17 includes excise duty recovered on sales of Rs. 196.02 lakhs and for the year ended 31st March, 2017 includes excise duty recovered on sales of Rs. 725.82 lakhs.

2 Earnings per share (EPS)

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

3 Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined contribution plans:

The company recognised Rs. 20.68 lakhs (P.Y : Rs. 17.30 lakhs ) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period. The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31, 2018.

4 Disclosure pursuant to Ind AS 17 - Leases

Lease payments are recognised in statement of Profit and Loss under the head "Rent Expense" in note no 30.

5 Disclosure related to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The Disclosure Pursuant to the said MSMED Act is as follows:

Note 1: Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 2: There is no interest paid during the year or payable at the end of the year to any of the Micro and Small Enterprises.

6 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act , 2013 , a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects as specified in Schedule VII of the Companies Act, 2013.The details of amount required to be spent and actual expenses spent during the year is as under:

(a) Gross amount required to be spent by the company during the year: Rs. 17.37 lakhs (Previous Year Rs. 17.42 lakhs)

(b) Amount spent during the year on:

7 Operating Segments

The activities of the Company relate to only one segment i.e. Manufacturing of Pharmaceuticals Formulations Geographical Information

The analysis of geographical information is based on the geographical location of the customers. The geographical information considered for disclosure are as follows:

Property, Plant & Equipment by Geographical Locations

8 Fair Value Measurements

Financial instruments by category

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes Venture Capital funds that have quoted price. The Venture Capital funds are valued using the closing NAV.

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

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

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instrument

- the fair value of the remaining financial instruments is determined using discounted analysis(if any).

9 Financial Risk Management

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

The Companyâs 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. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments. Credit risk is managed through continuous monitoring of receivables and follow up for over dues.

(i) Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counter parties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

(ii) Financial assets

Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

(B) 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 responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities for:

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(i) Price Risk

The company is mainly exposed to the price risk due to its investments in Venture Capital funds. The price risk arises due to uncertainties about the future market values of these investments. The above instruments risk are arises due to uncertainties about the future market values of these investments.

Management Policy

The company maintains its portfolio in accordance with the framework set by the Risk management Policies.

(ii) Foreign Currency Risk

The risk is measured through a forecast of foreign currency for the Companyâs operations.

Sensitivity

The sensitivity of profit or loss to changes in the exchange rates arises mainly from Unhedged foreign currency denominated financial instruments.

10 Capital Management Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital as well as the level of dividends to shareholders.

11. Expenditure on Formulation and Development (F&D)

The Company''s F&D Centre, as certified by Department of Scientific and Industrial Research Functions at Survey No. 144/146, Jarod-Samlaya Road, Village-Haripura, Tal.-Savli, Vadodara.

The holding Company has been granted approval from 1st April, 2014 to 31st March, 2019 for claiming deduction u/s 35 (2AB) of the Income Tax Act, 1961. Accordingly, the Company has considered weighted deduction u/s 35 (2AB) while computing the tax liability under the Income Tax Act.

12. Disclosure as required by Ind AS 101 first time adoption of Indian Accounting Standards Transition to Ind AS

These are the Companyâs first Standalone Financial Statements prepared in accordance with Ind AS.

The accounting standards notified u/s 133 of the Companies Act, 2013 and the Accounting policies set out in note 1.2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The Companyâs date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set out in the following tables and notes

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied by the Company in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities.

Accordingly, the Company as elected to measure all of its PPE at their previous GAAP carrying value.

A.1.2 Investments in subsidiary

If a first time adopter measures investments in subsidiary, joint venture or associate at cost in accordance with Ind AS 27, Ind AS 101 allows the entity to measure such investments at one of the following amounts in its separate opening Ind AS Balance Sheet

(a) Cost determined in accordance with Ind AS 27; or (b) Deemed cost.

The deemed cost of such an investment shall be its:

(i) fair value at the entityâs date of transition to Ind ASs in its separate financial statements; or

(ii) previous GAAP carrying amount at that date.

The above options can be selected each investment wise. Accordingly the Company has elected to measure investment in its subsidiary at their previous GAAP carrying value.

A.2 Ind AS Mandatory Exceptions

A.2.1 Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in venture capital funds carried at Fair Value through Profit and Loss (FVPL).

A.2.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliations between previous GAAP and Ind AS

The following tables represent the reconciliations of Balance Sheet, Total Equity, Total Comprehensive Income, and Cash Flows from previous GAAP to Ind AS.

C. Notes to First time adoption

1 Fair valuation of investments

Under the previous GAAP, investments in Venture Capital funds were classified as long-term investments or current investments based on the intended holding period and realisability. Long term investments were carried at cost less provision for other than temporary decline in the value of such investments. Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes of these investments have been recognized in retained earnings as at the date of transition and subsequently in the profit and loss for the year ended March 31, 2017. This increased the retained earnings by Rs.5.33 lakhs as at March 31, 2017 (April 1, 2016 â Rs. 9.34 lakhs).

2 Retained Earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS adjustments.

13 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 30th May, 2018.

14 The figures as on the transition date and previous year have been re-arranged and regrouped wherever necessary to make them comparable with those of the current year.

Mar 31, 2002

1. Sundry Debtors, Creditors and Loans & Advances:-

In the absence of Balance confirmation certificates from Debtors, Creditors and the other parties, the balance as per ledger are taken as correct.

2. Sales Tax Liability:-

As informed, the sales tax assessment of Bharat Chem. Laboratories, Kalol, a division of the company, for the year 1991-1992 is not yet finalized and the sales tax liability for the same is unascertainable.

3. Preliminary Expenditure & Equity Share Issue Expenses:-

In earlier years, preliminary expenditure are written off equally over a period of 10 years. During the year company has not been written off any amount of preliminary expenditure & equity share issue expenses.

4. Directors Remuneration:-

During the previous year 2001-2002 Rs. 185000/- is paid to Director as Directors Remuneration.

5. Payment to Auditors:-

During the P. Y. 2001 - 2002

Rs. 20000/- for Audit Fees.

Rs. 15000/- for Tax Audit & Taxation services.

Rs. 5000/- for other work (Certificates etc.)

Rs. 2000/- for service tax

6. The working capital facilities from banks are secured by first charged on the stock, stores and book debts and by second charge over the immovable and movable properties of the company, both present and future.

7. Term loans are secured by first mortgage on immovable and movable properties of company including movable machinerys, spares, tools and accessories and second charge of all the remaining assets subject to prior charge created or to be created in favour of the bank for working capital facilities.

8. Provision for interest on Banks loan is not made because same is not ascertainable due to N. P. A. and provision for interest on unsecured loan is also not made.

9. Earnings Per Share 31.03.2002 31.03.2001

No. of equity shares of Rs. 10/- each 3770400 3770400

Net profit after tax available for equity shareholders (Rs.) (-)1298294 (-)2563673

Basic and Diluted Earnings Per Share (Rs.) (-)0.34 (-)0.68

10. The break up of net deferred tax asset as at 31st March, 2002 is as under:

Deferred Deferred Tax asset tax liability

Difference between book depreciation and depreciation under the Income-tax Act, 1961 224889

Others - 21481

Total Rs. 224889 21481

Net Deferred Tax Asset 203408

11. Related Party Disclosures

a) List of Related Parties:-

Dr. Dahyabhai J. Patel Chairman & Managing Director

Shri Bharat R. Desai Managing Director

Shri Jagdishbhai H. Shah Director

Shri Hasmukhbhai R. Shah Director

Shri Hasmukhbhai P. Patel Director

Shri Manohar U. Kundnani Director

Shri Vipul Popatlal Cheda Director

Shri Shantilal C. Bhayani Director

Shri Parvinbhai C. Joshi Director

b) Transactions with related parties:-

Remuneration to Managing Director Shri Bharat R. Desai Rs. 185000.00

Mar 31, 1999

1. Company has a division under the name and style of BHARAT CHEM LABORATORIES all the business carried on by the division is incorporated in the accounts of the company.

2. Sundry Debtors and Loans and Advances :

In the absence of Balance conformation certificates from Debtors, Creditors and Other Parties, the balances as per ledger are taken as correct.

3. Sales Tax Liability :

As informed, the sales tax assessment of Bharat Chem Laboratories, Kalol, a division of the company, for the year 1991-1992 is yet not finished and the sales tax liability for the same is unascertainable.

4. Preliminary Expenses and Equity Share Issue Expenses.

In earlier years, Preliminary Expenses are written off equally over a period of 10 years. The company has during the year not written off any amount from Preliminary and Equity Share Issue Expenses.

5. The company believes that there would be no taxable income for the year under review and therefore no provision for the taxation is required to be made in the accounts.

6. The working capital facilities from banks are secured by first charge on the stock, stores and book debts and by second charged over the immovable and movable properties of the company, both present and future.

7. Term loans are secured by first mortgage on immovable and movable properties of company including movable machinery's, spears, tools and accessories and second charge of all remaining assets subject to prior to charge created or to be created in favour at the bank for working capital facilities.

Mar 31, 1996

Information not available

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