Notes to Accounts of Cohance Lifesciences Ltd.

Mar 31, 2025

2.15 Provisions

Provisions are recognised when the Company has a present
legal or constructive obligation as a result of past events, it is
probable that an outflow of resources will be required to settle
the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision
is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations
may be small.

Provisions are measured at the present value of management''s
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.

2.16 Contingencies

Disclosure of contingent liabilities is made when there is a
possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. Where there
is possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or
disclosure is made.

Contingent assets are not recognised in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an inflow of economic benefits will arise,
the asset and related income are recognised in the period in
which the change occurs.

2.17 Business combinations

The Company accounts for business combinations under
acquisition method of accounting. Acquisition related costs
are recognized in the statement of profit and loss account
as incurred. The acquiree''s identifiable assets, liabilities and
contingent liabilities that meet the condition of recognition

are recognized at their carrying values at the acquisition
date. Purchase consideration paid in excess of the fair
value of net assets acquired is recognized as goodwill. The
choice of measurement basis is made on an acquisition-by¬
acquisition basis.

Further business combinations arising from transfer of interest
in entities that are under common control are accounted at
pooling of interest. Under the pooling of interest method, the
assets and liabilities of the combining entities are reflected at
their carrying amounts, the only adjustment that are made are
to harmonize accounting policies.

The financial information in the financial statements in
respect of periods are restated as if the business combination
had occurred from the beginning of the preceding period
in the financial statements, irrespective of the actual date
of the combination. However, if business combination had
occurred after the date, the prior period information is restated
only that date.

The identity of the reserves is preserved and they appear in the
financial statements of the Company in the same form in which
they appeared in the financial statements of the acquired
entity. The difference, if any, between the consideration and the
amount of share capital of the acquired entity is transferred to
Other equity in a separate reserve account.

2.18 Goodwill

Goodwill represents the excess of consideration transferred,
together with the amount of noncontrolling interest in the
acquiree, over the fair value of the identifiable net assets
acquired. Goodwill is measured at cost less accumulated
impairment losses.

2.19 Fair value measurement

The Company measures financial instruments at fair value at
each reporting date.

Financial instruments

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

(i) Financial assets

(a) Classification

The Company classifies its financial assets in the following
measurement categories:

• those to be measured subsequently at fair value
(either through other comprehensive income, or
through statement of profit and loss); and

• those to be measured at amortised cost.

The classification depends on the entity''s business model
for managing the financial assets and the contractual
terms of the cash flows.

For assets measured at fair value, gains and losses will
either be recorded in statement of profit and loss or other
comprehensive income.

(b) Initial recognition and measurement

Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation
or convention in the marketplace (regular way trades)
are recognised on the trade date, i.e., the date that the
Company commits to purchase or sell the asset. All other
financial assets are recognised initially at fair value plus,
in the case of financial assets not recorded at fair value
through statement of profit and loss, transaction costs that
are attributable to the acquisition of the financial asset.
However, trade receivables that do not contain significant
financing component are measured at transaction price.

(c) Subsequent measurement

For purposes of subsequent measurement, financial
assets are classified in below categories:

(i) Debt instruments at amortised cost

A ''debt instrument'' is subsequently measured at the
amortised cost using the effective interest rate (EIR)
method. Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR.
The EIR amortisation is included in Other Income in
the profit or loss. The losses arising from impairment

are recognised in the standalone statement of
profit and loss.

(ii) Debt instrument at fair value through other
comprehensive income (FVTOCI)

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the other comprehensive income
(OCI). However, the Company recognises interest
income, impairment losses and reversals and foreign
exchange gain or loss in the profit or loss. On de¬
recognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified from the
equity to profit or loss. Interest earned whilst holding
FVTOCI debt instrument is reported as interest
income using the EIR method.

(iii) Debt instrument at fair value through profit or
loss (FVTPL)

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost or
as FVTOCI, is classified as at FVTPL. In addition, the
Company may elect to designate a debt instrument,
which otherwise meets amortised cost or FVTOCI
criteria, as at FVTPL. However, such election is
allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred
to as ''accounting mismatch''). Debt instruments
included within the FVTPL category are measured
at fair value with all the changes in the standalone
statement of profit and loss.

(iv) Equity instruments

All equity instruments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL. For
all other equity instruments, the Company may
make an irrevocable election to present subsequent
changes in the fair value in OCI. The Company makes
such election on an instrument-by-instrument basis.
The classification is made on initial recognition and
is irrevocable. If the Company decides to classify
an equity instrument as at FVTOCI, then all fair
value changes on the instrument, including foreign
exchange gain or loss and excluding dividends, are
recognised in the OCI. There is no recycling of the

amounts from OCI to profit or loss, even on sale of
investment. However, the Company may transfer
the cumulative gain or loss within equity. Equity
instruments included within the FVTPL category are
measured at fair value with all changes recognised in
the standalone statement of profit and loss.

(d) Investments in subsidiaries

Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount of
the investment is assessed and written down immediately
to its recoverable amount. On disposal of investments
in subsidiaries, the difference between net disposal
proceeds and the carrying amounts are recognised in the
Statement of profit and loss.

Impairment of investments in subsidiaries

The Company reviews its carrying value of investments
annually, or more frequently when there is an indication
for impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for.

(e) De-recognition

The Company de-recognises a financial asset only when
the contractual rights to the cash flows from the asset
expires or it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset. When
the Company has transferred its rights to receive cash
flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has
retained the risks and rewards of ownership. When it
has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred
control of the asset, the Company continues to recognise
the transferred asset to the extent of the Company''s
continuing involvement. In that case, the Company also
recognises an associated liability. The transferred asset
and the associated liability are measured on a basis that
reflects the rights and obligations that the Company
has retained.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Company could be
required to repay.

(f) Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the debt instruments,
that are measured at amortised cost e.g., loans, trade
receivables, bank balances.

Expected credit loss is the difference between all the
contractual cash flows that are due to the Company in
accordance with the contract and all the cash flows that
the entity expects to receive.

The management uses a provision matrix to determine
the impairment loss on the portfolio of trade and other
receivables. Provision matrix is based on its historically
observed expected credit loss rates over the expected
life of trade receivables and is adjusted for forward
looking estimates.

Expected credit loss allowance or reversal recognised
during the period is recognised as income or expense,
as the case may be, in the Statement of Profit and Loss.
In case of balance sheet, it is shown as reduction from
specific financial asset.

(ii) Financial liabilities

(a) Classification

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through statement of profit
and loss, loans and borrowings, payables.

(b) Initial recognition and measurement

All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

The Company''s financial liabilities include trade and other
payables and derivative financial instruments.

(c) Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through statement of profit
and loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as
at fair value through statement of profit and loss. Financial
liabilities are classified as held for trading if they are

incurred for the purpose of repurchasing in the near term.
This category also includes derivative financial instruments
entered into by the Company that are not designated as
hedging instruments in hedge relationships as defined by
Ind AS 109- Financial Instruments. Separated embedded
derivatives are also classified as held for trading unless
they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised
in the statement of profit and loss.

Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind
AS 109 - Financial Instruments are satisfied. For liabilities
designated as FVTPL, fair value gains/ losses attributable
to changes in own credit risk are recognised in OCI. These
gains/ losses are not subsequently transferred to the
profit or loss. However, the Company may transfer the
cumulative gain or loss within equity. All other changes in
fair value of such liability are recognised in profit or loss.
The Company has not designated any financial liability as
fair value through statement of profit and loss.

(d) Loans and borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost
using the effective interest rate (EIR) method. Gains and
losses are recognised in statement of profit and loss when
the liabilities are de-recognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is
included as finance costs in the statement of profit and loss.

This category generally applies to interest-bearing loans
and borrowings.

(e) De-recognition

A financial liability is de-recognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the de¬
recognition of the original liability and the recognition of

a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit and loss.

(iii) Derivative financial instruments

The Company uses derivative financial instruments, such
as foreign exchange forward to hedge its foreign currency
risks for which no hedge accounting is applied. Such
derivative financial instruments are initially recognised
at fair value on the date on which a derivative contract
is entered into and are subsequently re-measured at fair
value. The changes in fair value of such derivative contracts,
as well as the foreign exchange gain and losses relating to
monetary items are recognised in the statement of profit
and loss. Derivatives are carried as financial assets when
the fair value is positive and as financial liabilities when
the fair value is negative.

(iv) Offsetting financial instruments

Financial assets and liabilities are offset and the net
amount is reported in the balance sheet where there is a
legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis or realise
the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events
and must be enforceable in the normal course of business
and in the event of default, insolvency or bankruptcy of
the Company or the counterparty.

2.20 Earning Per Share

Basic Earnings Per Share (''EPS'') is computed by dividing the net
profit attributable to the equity shareholders by the weighted
average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the net profit
after income tax effect of interest and other financing costs
associated with dilutive potential equity shares by the weighted
average number of equity shares considered for deriving basic
earnings per share and also the weighted average number of
equity shares that could have been issued upon conversion
of all dilutive potential equity shares. Dilutive potential equity
shares are deemed converted as of the beginning of the year,
unless issued at a later date. In computing diluted earnings per
share, only potential equity shares that are dilutive and that
either reduces earnings per share or increases loss per share
are included.

2.21 Share based payments

The Company operates equity-settled share-based
remuneration plans for its employees. The Company recognises
compensation expense relating to share based payments in
accordance with Ind AS 102-Share based Payment.

For share entitlement granted by the Company to its employees,
the estimated fair value as determined on the date of grant, is
charged to the standalone statement of profit and loss on a
straight-line basis over the vesting period and assessment of
performance conditions if any, with a corresponding increase in
equity. Upon exercise of share options, the proceeds received,
net of any directly attributable transaction costs, are allocated
to share capital up to the nominal (or par) value of the shares
issued with any excess being recorded as share premium

2.22 Leases

The determination of whether an arrangement is (or contains)
a lease is based on the substance of the arrangement at the
inception of the lease. The arrangement is, or contains, a lease
if fulfillment of the arrangement is dependent on the use of a
specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly
specified in an arrangement.

(i) Company as a lessee

The Company''s lease asset classes primarily consist of
leases for land, building and vehicle. The Company assesses
whether a contract contains a lease, at inception of a
contract. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. To
assess whether a contract conveys the right to control the
use of an identified asset, the Company assesses whether:

(i) the contract involves the use of an identified asset

(ii) the Company has substantially all of the economic
benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the use
of the asset.

At the date of commencement of the lease, the
Company recognises a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short term leases) and low value leases.
For these short term and low value leases, the Company

recognises the lease payments as an operating expense
on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term.
ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The right-of-use assets are initially recognised at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e., the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortised cost at
the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU assets have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.

2.23 Recent accounting pronouncements

The Ministry of Corporate Affairs notified new standards or
amendment to existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. The
Company applied following amendments for the first-time
during the current year which are effective from 1 April 2024:

a) Amendments to Ind AS 116 - Lease liability in a sale
and leaseback

The amendments require an entity to recognise lease
liability including variable lease payments which are not

linked to index or a rate in a way it does not result into gain
on Right of Use asset it retains.

b) Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard
that prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for accounting
insurance contracts and it applies to all companies i.e., to
all "insurance contracts" regardless of the issuer. However,
Ind AS 117 is not applicable to the entities which are
insurance companies registered with IRDAI.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that these
amendments do not have a significant impact on the
Standalone Financial Statements.

2.24 New and amended standards issued but not effective:

There are no new and amended standards that are issued, but
not yet effective as of 31March 2025.

The Goodwill amounting to C60.25 pertains to the acquisition of Casper Pharma Private Limited, erstwhile subsidiary of the
Company. Following the merger of Casper Pharma Private Limited with the Company, and the resulting goodwill has been
recognized in the standalone financial statement. Goodwill is allocated to the Casper and formulation business division of
the Company (together known as Cash generating unit) expected to benefit from the synergies of the business combinations
in which the goodwill arises. The Company tests cash-generating units with goodwill annually for impairment, or more
frequently if there is an indication that a cash-generating unit to which goodwill has been allocated may be impaired. The
recoverable amount of goodwill has been assessed by using a value-in-use model of the underlying cash generating unit
("CGU"). The recoverable value is determined by detailed forecast, approved by the management, followed by an extrapolation
of expected cash flows for the remaining useful lives using a declining growth rate determined by management. The present
value of the expected cash flows of each cash generating unit is determined by applying a suitable discount rate reflecting
current market assessments of the time value of money.

Key assumptions upon which the company has based its determinations of value in use includes:

(a) The Company prepares its cash flow forecast for five years based on management''s projections.

(b) A terminal value is arrived at by extrapolating the last forecasted year cashflows to perpetuity, using a constant long¬
term growth rate at 7.00% ( 31 March 2024: 5.00%)

(c) Growth rate

The growth rates are based on industry growth forecasts. Management determines the budgeted growth rates based on past
performance and its expectations of market development. The weighted average growth rates used were consistent with
industry reports at 14.00%.

(d) Discount rates

Management estimates discount rates that reflect current market assessments of the risks specific to the CGU, taking into
consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the
cash flow estimates. The discount rate calculation is based on the specific circumstances of the Group and its operating
segments and is derived from its weighted average cost of capital (WACC) at 12.00% ( 31 March 2024: 17.67%). The Company
believes that any reasonably possible change in the key assumptions on which a recoverable amount is based would not
cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating units.

(e) Sensitivity

Reasonable sensitivities in key assumptions consequent to the change in estimated growth rate and discount rate is unlikely
to cause the carrying amount to exceed the recoverable amount of the cash generating units.

(i) Cohance Lifesciences Inc (formerly known as Suven Pharma Inc) is engaged in the business of contract development and
manufacturing (CDMO) of pharmaceutical products.

(ii) Pursuant to definitive agreements entered by the company with Sapala Organics Private Limited ("Sapala"), the company
has acquired 51% of the share capital on a fully diluted basis (i.e., 67.5% of the present equity share capital) of Sapala on
12 July 2024 for a consideration of C258.00 and gained control of Sapala Organics Private limited ("Sapala") as a subsidiary.
The Company has obligation to acquire the non-controlling interest in 2 tranches, one based on achievement of business
performance milestones and another one based on regulatory approval. The company has recognised the derivative forward
contract over the Sapala shares is recognized at its fair value. Sapala is a Hyderabad based CDMO focused on Oligo drugs
and nucleic acid building blocks including Phosphoramidites & Nucleosides, drug delivery compounds (including GalNAc),
Pseudouridine, amongst others.

(iii) Pursuant to the definitive agreements dated 7 December 2024, the Company have acquired the ownership of 56% equity
share capital of NJ Bio, Inc., by a mix of primary infusion and secondary acquisition for a total consideration of $64.4
million (C547.96).

The Company holds 56% equity shareholding in the NJ Bio, Inc. through a combination of secondary acquisition of shares from
certain existing shareholders and a primary subscription to equity share capital of NJ Bio, Inc. The aggregate consideration of
USD 64.4 million, has been paid in the following manner:

(a) $49.40 million (C420.33), in aggregate, for secondary acquisition of 9,32,113 common equity shares of NJ Bio, Inc. from NJ Bio,
Inc''s certain existing shareholders; and

(b) $15.00 million (C127.63), in aggregate, for the primary subscription to 2,83,019 common equity shares of NJ Bio, Inc.

Based on above, the Company obtained the control of NJ Bio, Inc. w.e.f 20 December 2024 and has been assessed as Subsidiary.
NJ Bio, Inc. is a Contract Research, Development, and Manufacturing Organization ("CRDMO"), focused on ''antibody-drug
conjugates'' ("ADCs") and ''XDC,'' based in Princeton, New Jersey. Further, NJ Bio, Inc. has two wholly owned subsidiaries, namely,
(i) NJBIO India Pharmaceutical Private Limited, and (ii) NJ Biotherapeutics, LLC

Further, in terms of the definitive documents:

(a) the Company has a call option to purchase the remaining shares of the NJ Bio, Inc. from the remaining shareholders; and

(b) the remaining shareholders of the NJ Bio Inc. have a put option to sell the remaining shares to NJ Bio, Inc., in each case after
5 years, such that if the call option and / or the put option is exercised, the Company could own 100%.

Nature and purpose of reserves:

a) Securities premium: The amount received in excess of face value of the equity shares is recognised in securities
premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date
and nominal value of share is accounted as securities premium. This reserve will be utilised in accordance with provisions
of Section 52 of the Companies Act, 2013.

b) General reserve: The Company has transferred a portion of the net profit of the company before declaring dividend to
general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not
required under the Companies Act, 2013.

c) Employee Stock Options outstanding account: The employee stock option is used to recognise the value of
equity settled share-based payments provided to employees, including key management personnel, as part of their
remuneration. Refer to note 61 for further details of these plans.

Terms of borrowings:

(i) The Company has availed secured short-term packing credit loans of C40.00 from State Bank of India (repayable within
90 days, interest at 3-month T-Bill 0.55%) and C30.00 from Citi Bank (repayable within 180 days, interest at 3-month
T-Bill 0.80%). These loans are secured by a first pari-passu charge on current assets, and second pari-passu charges on
movable fixed assets and land & buildings at Pashamylaram and FDC units.

(ii) Packing credit loan amounting to C38.58 as at 31 March 2024 are foreign currency loan and was repayable on demand
and it was secured by hypothecation on stocks, Receivables and Other current assets of the company and second charge
on fixed assets at Pashamylaram and FDC units of the company. Interest rate 3 / 6 M SOFR 80 bps i.e 6.26% p.a with
monthly rest charged by State bank of India and 3 / 6 M SOFR 125 bps i.e 6.71 % by Bank of Bahrain & Kuwait. The same
has been fully repaid during current year.

Note:

(a) It is not practicable for the Company to estimate the timing of cash outflow, if any, in respect of our pending resolution
of the respective proceedings as it is determined only on receipt of judgements/decisions pending with various forum/
authorities.

(b) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(c) The Company''s pending litigations comprise of proceedings pending with indirect tax and other authorities. The
Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

38 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s
primary focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its
financial performance. The Company''s financial liabilities comprise of trade payable and other liabilities to manage its
operation and financial assets include trade receivables, security deposits, loans and advances, etc., arises from its operation.
The Company has constituted a Risk Management Committee consisting of a majority of directors and senior managerial
personnel. The Company has implemented a robust Business Risk Management framework to identify, evaluate business
risks and opportunities. This framework seeks to create transparency, minimise adverse impact on the business objectives
and enhance the Company''s competitive advantage. The business risk framework defines the risk management approach
across the enterprise at various levels including documentation and reporting. The framework has different risk models which
help in identifying risks trend, exposure and potential impact analysis at a Company level. The Audit Committee of the Board
periodically reviews the risk management framework.

[a) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness
as well as concentration of risks. Credit risk is controlled by analysing credit limits and credit worthiness of customers on a
continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments
that are subject to concentrations of credit risk principally consist of trade receivables, cash and cash equivalents, loans and
other financial assets. The Company establishes an allowance for doubtful receivables and impairment that represents its
estimate of incurred losses in respect of trade receivables, loans, financial assets and investments.The maximum exposure to
credit risk at the reporting date is the carrying value of trade and other receivables.

(i) Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and
controls relating to customer credit risk management. Trade receivables are non-interest bearing and are generally
on credit term in line with respective industry norms. Outstanding customer receivables are regularly monitored.
The Management has established a credit policy under which each new customer is analysed individually before the
Company''s standard payment and delivery terms and conditions are offered. The Company''s receivables turnover is quick
and there was no significant default on account of trade and other receivables. An impairment analysis is performed
at each reporting date on an individual basis for major clients. The Company assesses at each reporting date whether
a financial asset or a group of financial assets is impaired. Expected credit losses are measured at an amount equal to
the 12 months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on
the financial asset has increased significantly since initial recognition. The Company has used a practical expedient by
computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix
takes into account historical credit loss experience and is adjusted for forward looking information. None of the trade
receivable was past due and impaired. The default in collection as a percentage to total receivable is low and there is no
allowance for expected credit loss, considering there is no history of default till date, refer ageing in note 14.

(ii) Cash and other bank balances

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies. 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 counterparties, and does not have any significant
concentration of exposures to specific industry sectors or specific country risks.

(b) Liquidity risk

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

(c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange
rates, interest rates, credit, liquidity and other price changes. The Company''s exposure to market risk is primarily on account
of foreign currency exchange rate risk, interest rate risk and price risk.

(c.1) Foreign currency exchange rate risk:

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and
other comprehensive income and equity, where any transaction references more than one currency or where assets
/ liabilities are denominated in a currency other than the functional currency of the Company. Considering the countries
and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in
exchange rates in those countries. The Company has a treasury team which evaluates the impact of foreign exchange rate
fluctuations by assessing its exposure to exchange rate risks and advises the management of any material adverse effect on
the Company.

(c.2) Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of the Company and the Company''s financial instruments
will fluctuate because of changes in market interest rates. The Company''s exposure to interest rate risk relates primarily to
the floating interest rate borrowings. The Company''s investment in deposits with banks, deposits with others, investments
in Compulsorily convertible debentures with fixed interest rates and therefore do not expose the Company to significant
interest rate risk. The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating
rate short term borrowing.

The Company also invests in debt mutual fund schemes of leading fund houses. Such investments are susceptible to market
price risks that arise mainly from changes in interest rate which may impact the return and value of such investments. However,
given the relatively short tenure of underlying portfolio of the debt mutual fund schemes in which the Company has invested,
such price risk is not significant.

(c.3) Other price risk

Other price risk is the risk that the fair value or future cash flows of the Company''s financial instruments will fluctuate because
of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused
by factors specific to the individual financial instrument or its issuer or by factors affecting all similar financial instruments
traded in the market. The Company based on working capital requirement keeps its liquid funds in current accounts. Excess
funds are invested in current investments. The Company has investment that are susceptible to market price risk arising from
uncertainties about future values of the investment securities. The Company manages the price risk through diversification
of portfolio are submitted to the management on a regular basis

The Company has laid policies and guidelines which it adheres to in order to minimise price risk arising from investments
in financial instruments. A 10% increase/(decrease) in prices would increase/(decrease) the equity and profit or loss by the
amounts shown below.

(d) Impact of hedging activities

The Company uses foreign exchange forward contracts to hedge against the foreign currency risk of highly probable USD,
EUR and GBP sales. Such derivative financial instruments are governed by the Company''s policies approved by the Board of
Directors, which provide written principles on the use of such instruments consistent with the Company''s risk management
strategy. As the value of the derivative instrument generally changes in response to the value of the hedged item, the
economic relationship is established. There are no forward contract outstanding as at 31 March 2025 and 31 March 2024.

Valuation technique used to determine fair value:

(b) The fair value of the financials assets and liabilities is reported at the amount at which the instrument could be exchanged in
a current transaction between willing parties other than in a forced or liquidation sale.

(c) The fair value of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these
mutual fund units in their published statements as at Balance Sheet date. NAV represents the price at which the issuer will
issue further units of mutual fund as well as the price at which issuers will redeem such units for the investors

The following methods and assumptions were used to estimate the fair values:

The carrying amount of trade receivable, trade payable, capital creditors, loans, margin deposit, security deposit, cash and
cash equivalents, other bank balances and other receivables as at 31 March 2025 and 31 March 2024 are considered to be the
same as their fair values, due to their short-term nature. Difference between carrying amounts and fair values of other financial
assets, other financial liabilities and short term borrowings subsequently measured at amortised cost is not significant in each
of the year presented.

Financial Instruments with fixed and variable interest rates are evaluated by the company based on parameters such as
interest rate and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account
for the expected losses of these receivables.

Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The followingtable shows the Levels within the hierarchy, offinancialassets and liabilities measuredat fair value on a recurring basis
as at 31 March 2025 and 31 March 2024: :

41 Capital management

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 structure
to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amounts of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt. Consistent
with others in Industry, the Company monitors capital on the basis of the following gearing ratio: (net debt divided by
total ''equity'')

40 Segment information

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

(b) Disclosures related to defined benefit plan

The Company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. Every employee who has
completed five years or more of service is entitled to gratuity on departure at 15 days last drawn salary for each completed
year of service or part thereof in excess of six months.

This defined benefit plan exposes the Company to actuarial risk, such as longevity risk, currency risk, interest rate risk and
market (investment) risk.

The plan is funded with Life Insurance Corporation in the form of a qualifying insurance policy. The following tables
summarise the components of net benefit expense recognised in the statement of profit and loss, the fund status and
amounts recognised in the balance sheet:

The sensitivity analysis above has been determined based on reasonable possible changes of the respective assumption
occurring at the end of the reporting period while holding all other assumptions constant. The sensitivity analysis presented
above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change
in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in
presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using
the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the
projected benefit obligation as recognised in the Balance Sheet

Discount rate : The discount rate is based on the prevailing market yields of Indian Government securities as at the balance
sheet date for the estimated term of obligations.

Salary escalation rate : The estimate of future salary increases considered takes into account the inflation, seniority,
promotion and other related factors.

Compensated absences:

The Company provides for accumulation of compensated absences by certain categories of its employees. These employees
can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in
lieu thereof 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. The total liability recorded by the Company towards this
obligation was C15.12 and C12.83 as at 31 March 2025 and 31 March 2024 respectively.

* Cost of goods sold includes cost of materials consumed and changes in inventories of finished goods and work-in-progress.

# capital employed = Total assets - Current liabilities.

Reasons for change more than 25%:

i) Current Ratio: On account of disinvestment of current investments for acquisition of subsidiaries.

ii) Debt-equity Ratio: On account of availment of loans during the year.

iii) Inventory turnover ratio : On account of decrease in Inventory.

iv) Trade receivable turnover ratio: On account of increase in trade receivable compared to previous year

v) Net capital turnover ratio: Increase on account of disinvestment of current investments for acquisition of subsidairies.

44 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of
the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company utilizes multiple software applications for maintaining its accounting and payroll records. the Company has
assessed the implementation and operation of audit trail (edit log) features across these systems during the financial year.
The status of audit trail controls is summarized below:

SAP (Accounting records):

The audit trail (edit log) feature was enabled at the application level and the same operated throughout the year. However,
the audit trail (edit log) feature at database level were not enabled.

ADP (Payroll records):

The audit trail (edit log) feature was not enabled at the application level and database level.

Tally (Accounting records):

The audit trail feature was enabled at the application level and operated effectively throughout the year. However, the
Independent Service Auditor''s Type 2 report issued in accordance with SAE 3402 did not provide assurance on the existence
or effectiveness of audit trail controls for direct database-level changes. As a result, the Company is unable to ascertain the
existence of such controls.

Darwin Box:

The audit trail feature was enabled at the application level and operated effectively throughout the year. However, the
Independent Service Auditor''s Type 2 report issued in accordance with SAE 3402 (Revised) did not confirm whether audit trail
controls capture details of changes made at the database level. Accordingly, the Company is unable to confirm the existence
of such controls.

45 Details of loan given and investment made

(a) Refer note 9 for investments made.

(b) Loans given to employees as per the Company''s policy are not considered.

46 The Company neither holds any Benami property, nor proceedings have been initiated or are pending against the Company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 Disclosures pursuant to the requirement as specified under Paragraph 6(L)(ix)(a) and (b) of the General Instructions
for preparation of Balance Sheet of Schedule III to the Act:

For the purpose of reporting under this clause, management has provided disclosures only with respect to information on
trade receivables, creditors and inventories furnished to the lenders. There have been no disagreements between information
furnished to the lenders and as per books.

48 The Company has no transactions with companies struck off under section 248 of the Companies Act, 2013 to the best of the
knowledge of Company''s management.

49 The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies (ROC)
beyond the statutory period

50 The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous
financial year other than disclosed in standalone financial statements (refer note 58).

51 The Company has complied with the number of layers prescribed under the Companies Act, 2013.

52 The Company have not traded or invested in Crypto currency or Virtual Currency.

53 Other than disclosed in note 19, the Company has no borrowings from Banks and financial institutions

54 Other than disclosed in note 19, the company have not taken any borrowing based on security of current assets.

55 The Company has not been declared willful defaulter by any bank or financial Institution or other lender.

56 No transactions, which are not recorded in the books of accounts of the Company 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).

57 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules, 2014:

(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 persons or entities, 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 (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.

58 Business combination

The Board of Directors of the Company had approved arrangement for amalgamation of erstwhile wholly owned subsidiary,
Casper Pharma Private Limited (Transferor Company) with the Company (the Transferee Company) in its meeting held on
29 February 2024. The Scheme of amalgamation has been approved by the Hon''ble National Company Law Tribunal (NCLT)
vide order dated 24 October 2024. The certified copy of the Order has been filed with Registrar of Companies, Mumbai on 4
December 2024, on which the Scheme became effective on 1 January 2025 as per approved arrangement of amalgamation.
Accordingly, the Company has accounted for the business combination transaction using the Pooling of interest method in
accordance with the approved scheme as per Appendix C of Ind AS 103, Business Combinations of Entities under Common
Control. Pursuant to above, the financial statements of the Company in respect of the prior periods have been restated as if
the aforesaid business combination had occurred from the beginning of the preceding period, irrespective of the actual date
of the combination.

Reason for not been held in the name of the Company

These properties were obtained pursuant to demerger with Suven Lifesciences Limited and are legally owned by the Company.
However, the land records are pending for suitable change to update the name of the Company from the erstwhile com

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Mar 31, 2024

10 (a).2 Terms/ rights attached to equity shares

Equity shares have a par value of C1. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently . The distribution will be in proportions to the number of equity shares held by the shareholders

(ii) Defined Benefit plan Gratuity

The Company provides for gratuity for employees in India as per the payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 day salary multiplied for the number of years of service. The plan is funded with Life Insurance Corporation in the form of a qualifying insurance policy. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments..

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when

calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(v) Best estimate of Contribution during the next year

The recommended contribution is minimum of net liability (Defined Benefit obligation -Fund balance as at valuation date) = C241.66 Lakhs or 8.33% of the wage bill

Discontinuance Liability

Amount payable upon discontinuance of all employment is C1,701.27 Lakhs

(vi) Risk exposure

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

Asset Volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with high grades and in government securities. A portion of the fund is invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The company intends to maintain the investment mix in the continuing years.

Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Inflation risk: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligation are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in the plan''s liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company''s ALM objective is to match the assets to the pension obligations by investing in long term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods.

A large portion of assets in 2023-24 consists of government and corporate bonds, although the company also invests in equities, cash and mutual funds. The company believes that equities offer the best returns over the long term with an acceptable level of risk. The majority of equities are in a globally diversified portfolio of international blue chip entities,

with a target of 60% equities held in India. The plan asset mix is in compliance with the requirements of the respective local regulations.

Interest Rate : A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Investment Risk: If actual return on plan assets us below this rate, it will create a plan deficit.

Salary Risk: Higher than expected increase in salaries increases the defined benefit obligations.

Demographic Risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment . An increase in the life expectancy of the plan participants will increase the plans liability.

Other Long term benefit plans

Disclosures relating to Compensated Absences

The Company provides for accumulation of compensated absences in respect of certain categories of employees. Theses employees can carry forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in lieu thereof as company policy

Actuarial valuation for compensated absences is done as at the year end and provision is made as per company policy with corresponding (gain) / Charge to the statement of profit and loss amounting to C686.42 Lakhs (March 31,2023 : C379.03 Lakhs)

a. Details of Current Borrowings

(i) . Terms of the borrowings

Current borrowings are availed in foreign currency. All secured working capital loans are packing credit foreign currency loans secured by hypothecation on stocks, Receivables and Other current assets of the company and second charge on fixed assets at Pashamylaram and FDC units of the company. Interest rate 3 / 6 M SOFR 80 bps i.e 6.26% p.a with monthly rest charged by State bank of India and 3 / 6 M SOFR 125 bps i.e 6.71 % by Bank of Bahrain & Kuwait.

(ii) Rate of Interest, Nature of security and Terms of repayment of Term Loan:

The loan is secured by Mortgage of land and building and plant and machinery embedded to earth, Hypothecation of movable fixed assets like furniture, computers etc. Situated at Pashamylaram unit and FDC Block. Interest rate being MCLR - 6M 150 bps, present effective rate being 9.90%.p.a with monthly rests. Interest will be reset every six months. FCNR(B) - 6M LIBOR/SOFAR 200 bps (for a period of six months). Term loan is repayable in 20 equal quarterly installments starting from June 2021.

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

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

Reason for shortfall

*Two ongoing projects, Developing a Chemistry Laboratory and Upgradation of Schools, are classified as such due to infrastructure creation/refurbishment timelines exceeding one year. The total allocation of C 356 lakhs remains unspent due to the ongoing nature of the projects and has been transferred to Unspent CSR account.

Nature of CSR Activities

Promoting education and skill development initiatives, community development initiatives, national heritage and development programs and other social and research/ development projects.

Note 25: Income tax expense

This note provides an analysis of the company''s income tax expense, show amounts that are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the company''s tax positions.

Note 26: Share based payments A. Employees Stock Option Plan (ESOP 2023)

The Company instituted an Employee Stock Option Scheme 2023 ("ESOP") to eligible employees which provides for a grant of 65.94 Lac options (each option convertible into 1 equity share based on MoM matrix) to employees. Grant date of option is 27 February 2024 .

Terms of options

Vesting period : based on vesting schedule as set out in letter of grant though service period shall be minimum 1 year and not latter than 10 years from date of grant.

The management assessed that cash and cash and cash equivalents, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. Further, the management has assessed the fair value of borrowings approximates their carrying amounts largely since they are carried at floating rate of interest. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(i) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels

Level 1: Level 1 hierarchy includes quoted prices taken from the market.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs are not based on observable market data (unobservable inputs).

(A) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

i) Financial instruments and cash deposits

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

ii) Expected credit loss for trade receivables under simplified approach

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

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(i) Foreign exchange risk

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars and Euros). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may decrease exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities

Note 29: Capital management

(a) Risk management

The Company''s objective when managing capital are to:

1. 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

2. 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 debts

Note 30: Segment information Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure, and the internal financial reporting scheme.The company has identified the following segments as its reportable segments:

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

As the Company has identified single operating segment i.e. Manufacturing (CRAMS) - Bulk Drugs & Intermediates & Services. Therefore analysis business segment is not required.

Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The Company sells Bulk Drugs and Intermediates, Fine Chemicals & Services.

(b) USA -The Company sells Intermediates & Services

(c) Europe-The Company sells Bulk Drugs and Intermediates

(d) Rest of the world -The Company sells Bulk Drugs, Intermediates & Services

Note 33: Contingent Liabilities
Particulars	March 31, 2024	March 31, 2023
a) APIIC-JN Pharmacity,Parawada- Restoration fee & Delay condonation fee	606.69	606.69
b) Claims arising from disputes not acknowledged - indirect taxes (GST)	978.53	-
	1,585.23	606.69
Note 34: Commitments
Particulars	March 31, 2024	March 31, 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for, net of payments (including advances)	4,044.73	2,331.12
	4,044.73	2,331.12
Note 35A: Earnings per share
Particulars	March 31, 2024	March 31, 2023
Profit After Tax (PAT)	30,481.61	43,260.25
Weighted average number of equity shares for Basic EPS	25,45,64,956	25,45,64,956
Add: Dilution Effect	-	-
Weighted average number of equity shares for Diluted EPS	25,45,64,956	25,45,64,956
Basic Earnings Per Share	11.97	16.99
Diluted Earnings Per Share	11.97	16.99

ESOPs have not been considered in the calculation of diluted EPS as the vesting conditions have not been met at reporting date.

Note 35B

In connection with the preparation of the financial statements for the year ended March 31,2024, the Board of Directors have confirmed the propriety of the contracts / agreements entered into by / on behalf of the Company and the resultant revenue

earned / expenses incurred arising out of the same after reviewing the levels of authorisation and the available documentary evidences and the overall control environment. Further, the Board of Directors have also reviewed the realizable value of all the current assets of the Company and have confirmed that the value of such assets in the ordinary course of business will not be less than the value at which these are recognised in the financial statements. In addition, the Board has also confirmed the carrying value of the non-current assets in the financial statements. The Board, duly taking into account all the relevant disclosures made, has approved these financial statements in its meeting held on May 30, 2024 in accordance with the provisions of Companies Act, 2013.

Note 35C

On February 29, 2024, the Board of Directors approved the draft Scheme of Amalgamation of Cohance Lifesciences Limited, an Advent-managed group company, into the company, pending necessary statutory and stakeholder approvals. Additionally, on the same date, they approved the Scheme of Amalgamation of Casper Pharma Private Limited, a wholly-owned subsidiary, into the company, subject to statutory approvals. The company has submitted applications to BSE and NSE seeking their NOC to approach the Hon''ble NCLT, Bench at Mumbai, for appropriate directions.

Note 37 : Other statutory information

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

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

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

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

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

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

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

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

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

(viii) The Company does not have any such transaction which is not recorded in the books of accounts 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

(ix) All quarterly returns or statements of current assets are filed by the company with banks or financial institutions and are in agreement with the books of account.

(x) The loan has been utilised by the company for the purpose for which it was obtained and no short term funds have been used for long term purpose.

(xi) The company have complied with the number of layers prescribed under the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017.

(xii) No scheme of arrangement has been approved by the competent authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year.

The accompanying notes form an integral part of the financial statements

Note 38 : The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature was not enabled at application level till November 12, 2023 and is not enabled at the database level. Further no instances of audit trail feature being tampered with was noted in respect of those software

Note 39 : Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.

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Mar 31, 2023

Provisions, Contingent Liabilities, Contingent Assets and commitments Provisions

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events; it is probable that an outflow of resources

will be required to settle the obligation; and the
amount has been reliably estimated.

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 recognised as
a finance cost.

Contingent Liabilities

Contingent liabilities are disclosed, unless the
possibility of outflow of resources is remote, when
there is

- A possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company or

- A present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle the obligation
or reliable estimate of the amount cannot be
made

Contingent Assets

A contingent asset is disclosed, where an inflow of
economic benefits is probable.

Commitments

- Commitments include the amount of purchase
order (net of advances) issued to parties for
completion of assets.

Provisions, contingent liabilities, contingent assets and
commitments are reviewed at each balance sheet date
(Refer Note 32 & 33).

ab) Exceptional Items

Exceptional items are disclosed separately in the
financial statements where it is necessary to do so
to provide further understanding of the financial
performance of the Company. These are material
items of income or expense that have to be shown

separately due to the significance of their nature or
amount.

ac) Critical estimates and Judgements

The preparation of the financial statements in
conformity with Ind AS requires Management to
make estimates, judgements and assumptions.
These estimates, judgements and assumptions
affect the application of accounting policies and
the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at
the date of the financial statements and reported
amounts of revenues and expenses during the
period. Accounting estimates could change from
period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are
made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in
estimates are reflected in the financial statements in
the period in which changes are made and, if material,
their effects are disclosed in the notes to the financial
statements.

The areas involving critical estimates or judgements are:

1. Estimation of current tax expense and payable

2. Estimated Useful life of Depreciable assets /
intangible assets

3. Estimation of defined benefit obligation

4. Recognition of revenue

5. Recognition of deferred tax assets for carried
forward losses

6. Recoverability of advances/receivable

7. Evaluation of indicators for Impairment of assets

8. Valuation of inventories

9. Determination of cost for right-of-use assets and
lease term

10. Contingencies

11. Financial instruments

12. Fair value measurement of financial instruments

13. Share based payments

14. Depreciation on property, plant, equipment, and
amortization of intangible assets

Estimates and judgements are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events that
may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.

New standards and interpretations not yet
adopted

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. On March 31,
2023,MCA amended the Companies (Indian Accounting
Standards) Rules, 2015 by issuing the Companies
(Indian Accounting Standards) Amendment Rules,
2023, applicable from April 1,2023, as below:

Ind AS 1 - Presentation of Financial

Statements

The amendments require companies to disclose their
material accounting policies rather than their significant
accounting policies. Accounting policy information,
together with other information, is material when it
can reasonably be expected to influence decisions of
primary users of general purpose financial statements.
The Company does not expect this amendment to
have any significant impact in itsfinancial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account
for deferred tax on transactions such as leases and
decommissioning obligations. The amendments
narrowed the scope of the cognition exemption
in paragraphs 15 and 24 of Ind AS 12 (recognition
exemption) so that it no longer applies to transactions
that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The Company
has evaluated and the amendment and there is no
impact on its financial statements.

I nd AS 8 - Accounting Policies, Changes in
Accounting Estimates and Errors

The amendments will help entities to distinguish
between accounting policies and accounting
estimates. The definition of a change in accounting
estimates has been replaced with a definition of
accounting estimates. Under the new definition,
accounting estimates are "monetary amounts in
financial statements that are subject to measurement
uncertainty". Entities develop accounting estimates
if accounting policies require items in financial
statements to be measured in a way that involves
measurement uncertainty. The Company does not
expect this amendment to have any significant impact
in its financial statements.

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Mar 31, 2022

*The Board has allotted the bonus shares at 1:1 ratio in it''s Board Meeting held on 29^th Sept,2020. Accordingly the number of shares increased from 12,72,82,478 to 25,45,64,956. The paid-up capital on account of Bonus issue of H12,72,82,478 has been appropriated from Share Premium account.

10 (a).2 Terms/ rights attached to equity shares

Equity shares have a par value of H1. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportions to the number of equity shares held by the shareholders

Nature and purpose of reserves Securities premium reserve:

The amount received in excess of face value of the equity shares is recognised in securities premium reserve. The reserve is utilised in accordance with the provisions of companies Act 2013.

General Reserve:

General reserve is used from time to time to transfer the profits from retained earnings for appropriation purpose.

Retained Earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distribution to share holders

Other Comprehensive Income:

Difference between the interest income on plan assets and the return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised in other comprehensive income and subsequently not reclassified into statement of profit and loss.

*The Compensated Absences (Leave Obligations) covers the company''s liability for earned leave which is classified as other long-term benefits. The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefit is discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations.

(ii) Defined Benefit plan Gratuity

The Company provides for gratuity for employees in India as per the payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 day salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(v) Best estimate of Contribution during the next year

The recommended contribution is minimum of net liability (Defined Benefit obligation -Fund balance as at valuation date) =H2,58,35,094.13 or 8.33% of the wage bill

Discontinuance Liability

Amount payable upon discontinuance of all employment is H 14,62,33,976

(vi) Risk exposure

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

Asset Volatility: The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets under perform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. A portion of the fund is invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The company intends to maintain the investment mix in the continuing years.

Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Inflation risk: In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

Life expectancy: The pension obligation are to provide benefits for the life of the member, so increase in life expectancy will result in an increase in the plan''s liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long term investments that are in line with the obligations under the employee benefit plans. Within this framework, the company''s ALM objective is to match the assets to the pension obligations by investing in long term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods.

A large portion of assets in 2021 consists of government and corporate bonds, although the company also invests in equities, cash and mutual funds. The company believes that equities offer the best returns over the long term with an acceptable level of risk. The majority of equities are in a globally diversified portfolio of international blue chip entities, with a target of 60% equities held in India. The plan asset mix is in compliance with the requirements of the respective local regulations.

Interest Rate : A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Investment Risk: If actual return on plan assets us below this rate, it will create a plan deficit Salary Risk: Higher than expected increase in salaries increases the defined benefit obligations

Demographic Risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plans liability

Other Long term benefit plans Compensated Absences

The Company provides for accumulation of compensated absences in respect of certain categories of employees. Theses employees can carry forward a portion of the unutilized compensated absences and utilize them in future periods or receive cash in lieu there of as company policy

Actuarial valuation for compensated absences is done as at the year end and provision is made as per company policy wit corresponding (gain) / Charge to the statement of profit and loss amounting to H9,75,74,265 (March 31,2021 : H3,24,62,908)

a. Details of Current Borrowings

(i) Rate of Interest, Nature of Security and Terms of repayment of working capital loan

The loan is secured by hypothecation on stocks, Receivables and Other current assets of the company and second charge on fixed assets at Pashamylaram and FDC units of the company and interest rate 7.80% p.a with monthly rest charged by state bank of India and 7.55 % by Bank of Bahrain & Kuwait

(ii) Rate of Interest, Nature of security and Terms of repayment of Term Loan:

The loan is secured by Mortgage of land and building and plant and machinery embedded to earth, Hypothecation of moveable fixed assets like furniture, computers etc. Situated at Pashamylaram unit and FDC Block. Interest rate being 1.30% of MCLR-6M(6.95%) present effective rate being 8.25%.p.a with monthly rests. Interest will be reset every six months. FCNR(B) -6MLIBOR/SOFAR 200bps(for a period of 1 year)

b. Loan from related party represents loan taken from Suven Life Sciences Limited at the approved rate of Interest @8% per annum.

Dues to micro and small enterprises:

With the promulgation of the Micro, Small and Medium Enterprises Development Act, 2006, the Company is required to identify Micro, Small and Medium Suppliers and pay them interest on overdue beyond the specified period irrespective of the terms with the suppliers. The Company has circulated letter to all suppliers seeking their status. Response from few suppliers has been received and is still awaited from other suppliers. In view of this, the liability of interest calculated and the required disclosures made, in the below table, to the extent of information available with the Company.

Nature of CSR Activities

Promoting education and skill development initiatives, community development initiatives, covid-19 relief and rehabilitation, national heritage and development programs and other social and research/ development projects.

Note 26: Income tax expense

This note provides an analysis of the company''s income tax expense, show amounts that are recognised directly in equity and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the company''s tax positions.

(i) Fair value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consist of the following three levels

Level 1: Level 1 hierarchy includes Quoted prices taken from market.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Note 28: 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 board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports to the board of directors on its activities.

The company''s risk management is carried out by the management. Company treasury identifies, evaluates and hedges financial risk in close cooperation with the company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk, and investment of excess liquidity.

(A) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

i) Financial instruments and cash deposits

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

ii) Expected credit loss for trade receivables under simplified approach

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

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(i) Foreign exchange risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (H). The risk is measured through a forecast of highly probable foreign forecast transactions.

The company''s risk management policy is to hedge part of forecasted foreign currency sales for the subsequent months. As per the risk management policy, foreign exchange forward contracts are taken to hedge part of the forecasted sales by taking consultancy from external treasury management forms. The imports were hedged naturally by payment through EEFC account.

(a) Risk management

The Company''s objective when managing capital are to:

1. 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

2. 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 debts

Note 30: Segment Information Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure, and the internal financial reporting scheme.The company has identified the following segments as its reportable segments:

I. Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services

As the Company has identified single operating segment i.e. Pharmaceuticals Manufacturing & Services. Therefore analysis business segment is not required.

The Board has allotted the Bonus shares at 1:1 ratio in it''s Board meeting held on 29^th September, 2020. Accordingly the number of shares increased from 12,72,82,478 to 25,45,64,956. In order to maintain uniformity and comparability the EPS of previous periods have been restated.

Note 35: Scheme of Arrangement(Demerger)

The National Company Law Tribunal, Hyderabad Bench vide its order dated January 06^th, 2020 has approved the scheme of arrangement for demerger of CRAMS undertaking of Suven Life Sciences Limited to the Company with effect from October 01^st, 2018 (the appointed date). Pursuant to the Scheme, all the assets, liabilities, income and expenses of the CRAMS undertaking have been transferred to the Resulting Company i.e., Suven Pharmaceuticals Limited with effect from the appointed date.

Note 36: Covid impact on the business and going concern assumption of company and its subsidiary:

The COVID-19 continuous to impact the business and research operations in India and our Wholly Owned Subsidiary, Suven Pharma, Inc., USA. Apart from the above the shortage or non- availability of vessels leading to delay in shipments, increase in transportation and distribution costs and timely non availability of materials with increase in materials costs are impacting our operations and profitability.

Note 38 : Other statutory information

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

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

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

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

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

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

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

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

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

(viii) The Company does not have any such transaction which is not recorded in the books of accounts 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

The accompanying notes form an integral part of the financial statements

Note 39 : Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.

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Mar 31, 2021

*The Board has alloted the bonus shares at 1:1 ratio in it''s Board Meeting held on 29th Sept, 2020. Accordingly the number of shares increased from 12,72,82,478 to 25,45,64,956. The paid-up capital on account of Bonus issue of 112,72,82,478 has been appropriated from Share Premium account.

10(a).2 Terms/ rights attached to equity shares

Equity shares have a par value of 11. They entitle the holder to participate in dividends, and to share in the proceeds of winding up the company in proportion to the number of and amounts paid on the shares held.

Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is entitled to one vote.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

To the Standalone Financial Statements for the year ended 31st March, 2021 (All amounts in Indian Rupees In Lakhs, unless otherwise stated)

Nature and purpose of reserves Securities premium reserve:

The amount received in excess of face value of the equity shares is recognised in securities premium reserve . The reserve is utilised in accordance with the provisions of Companies Act, 2013.

General Reserve:

General reserve is used from time to time to transfer the profits from retained earnings for appropriation purpose.

Retained Earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distribution to share holders

Other Comprehensive Income:

Difference between the interest income on plan assets and the return actually achieved, any changes in the liabilities over the year due to changes in actuarial assumptions or experience adjustments within the plans, are recognised in other comprehensive income and subsequently not reclassified into statement of profit and loss.

Gratuity

The Company provides for gratuity for employees in India as per the payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 day salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognized funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

(v) Best Estimate of Contribution during the next year

The recommended contribution is minimum of Net Liability (Defined Benefit Obligation - Fund Balances as at valuation date) = I 3,27,77,106.32 or 8.33% of the wage bill

(vi) Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below: Interest Rate : A decrease in bond yields will increase plan liabilities, although this will be partially off-set by an increase in the value of the plan''s bond holdings.

Investment Risk: If actual return on plan assets us below this rate, it will create a plan deficit.

Salary Risk: Higher than expected increase in salaries increases the defined benefit obligations.

Demographic Risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment . An increase in the life expectancy of the plan participants will increase the plans liability.

Other Long term benefit plans Compensated Absences

The Company provides for accumulation of compensated absences in respect of certain categories of employees.Theses employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive cash in lieu there of as company policy.

Actuarial Valuation for compensated absences is done as at the year end and provision is made as per company policy with corresponding (gain)/Charge to the statement of profit and loss amounting to I 324.63 Lakhs (31st March, 2020 : I 314.28 Lakhs).

a. Details of Current Borrowings

(i). Rate of Interest , Nature of Security and Terms of repayment of working capital loan

The loan is secured by hypothecation on stocks,Receivables and Other current assets of the company and second charge on fixed assets at Pashamylaram and FDC units of the company and interest rate of 7.80% p.a with monthly rest charged by State Bank of India and 7.55% by Bank of Bahrain & Kuwait.

(ii) Rate of Interest,Nature of security and Terms of repayment of Term Loan:

The loan is secured by Mortgage of land and building and plant and machinery embedded to earth, Hypothecation of moveable fixed assets like furniture, computers etc., situated at Pashamylaram unit and FDC Block. Interest rate being 1.30% of MCLR-6M (6.95%) present effective rate being 8.25%.p.a with monthly rests. Interest will be reset every six months. FCNR(B) -6MLIBOR/EURIBOR 200bps(for a period of 1 year).

The Company''s risk management policies are established to identify and analyse the risks being faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations. The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls and procedures, the result of which are reported to the audit committee. The Company is exposed primarily to credit risk, liquidity risk and market risk (including currency risk, interest rate risk and other price risk).

The company''s risk management is carried out by the management. Company treasury identifies, evaluates and hedges financial risk in close cooperation with the company''s operating units. The management provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, credit risk, and investment of excess liquidity.

(A) Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist of cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk.

i) Financial instruments and cash deposits

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

ii) Expected credit loss for trade receivables under simplified approach

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

(B) Liquidity Risk:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to dynamic nature of the underlying business, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position(comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The Company''s exposure to market risk is primarily on account of foreign currency exchange rate risk and interest rate risk.

(i) Foreign exchange risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, GBP and EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign forecast transactions.

The company''s risk management policy is to hedge part of forecasted foreign currency sales for the subsequent months. As per the risk management policy, foreign exchange forward contracts are taken to hedge part of the forecasted sales by taking consultancy from external treasury management forms . The imports were hedged naturally by payment through EEFC account.

(a) Risk management

The Company''s objective when managing capital are to:

1. 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

2. 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 debts.

The board of the directors of the company in their meeting held 8th June, 2021 has approved the payment of final dividend and the company has fixed date 17th August, 2021 as record date for determining eligibility of the share holders.

Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognized lability as at 31st March, 2021.

Effective from 1st April, 2020 : Dividends will be taxed in the hands of recipient, hence there will be no liability in the hands of the company.

Note 30 : Segment Information

Business Segment

Segments have been identified and reported taking into account the nature of products, the differing risk and returns, the organisation structure, and the internal financial reporting scheme.The company has identified the following segments as its reportable segments:

Manufacturing (CRAMS) - Bulk Drugs & Intermediates under contract services products are developed and produced on an exclusive basis under contract Manufacturing services.

As the Company has identified single operating segment i.e. Pharmaceuticals Manufacturing & Services. Therefore analysis business segment is not required.

Geographical Segment

The Company has identified the following geographical reportable segments:

(a) India-The company sells Bulk Drugs and Intermediates, Fine Chemicals & Services.

(b) USA -The company sells Intermediates & Services.

(c) Europe-The company sells Bulk Drugs and Intermediates.

(d) Rest of the World-The company sells Bulk Drugs, Intermediates & Services.

The Board has allotted the Bonus shares at 1:1 ratio in it''s Board meeting held on 29th September, 2020 . Accordingly the number of shares increased from 12,72,82,478 to 25,45,64,956. In order to maintain uniformity and comparability the EPS of previous periods have been restated.

Note 36 : Income Tax Expenses

Section 115BAA of the Income Tax Act, 1961 was introduced by Taxation Laws (Amendment) Ordinance 2019, which permit a Company to opt for the reduced tax rate of 22%, as prescribed. Accordingly, the Company has recognized provision for income tax for the year ended 31st March, 2021 and re-measured Deferred tax liabilities/assets (net)as per the rates prescribed in the said section. The full impact of this change has been recognized in the statement of Profit & Loss for the period ended 31st March, 2021.

Note 37 : Scheme of Arrangement (Demerger)

The National Company Law Tribunal, Hyderabad Bench vide its order dated 6th January, 2020 has approved the scheme of arrangement for demerger of CRAMS undertaking of Suven Life Sciences Limited to the Company with effect from 1st October, 2018 (the appointed date). Pursuant to the Scheme, all the assets, liabilities, income and expenses of the CRAMS undertaking have been transferred to the Resulting Company i.e. Suven Pharmaceuticals Limited with effect from the appointed date.

Note 38 : Covid impact on the business and going concern assumption of the company and its subsidiary

The COVID-19 did have some impact on the business and research operations in India starting March, 2021 and continues to impact in terms of employee absenteeism (around 20%), adjustment of shifts due to lock down, material movements and increase in raw material cost due to shortage of oxygen. However, there was no major impact on our subsidiary, Suven Pharma, Inc., USA.

Note 39

Previous year figures have been regrouped and reclassified wherever considered necessary to conform to this year''s classifications.

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