Notes to Accounts of Concord Biotech Ltd.

Mar 31, 2025

3.9 Contingent liabilities, contingent assets and
provisions

(a) Contingent liabilities:

A possible obligation that arises from past events
and the existence of which will be confirmed
only by the occurrence or nonoccurrence of
one or more uncertain future events not wholly
within the control of the enterprise are disclosed
as Contingent liability and not provided for.
Such liability is not disclosed if the possibility of
outflow of resources is remote.

(b) Contingent assets:

A contingent asset is a possible asset that arises
from past events and whose existence will
be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future
events not wholly within the control of the
entity. Contingent assets are not recognised
and disclosed only when an inflow of economic
benefits is probable.

(c) Provisions (other than employee
benefits):

A provision is recognized when as a result
of a past event, the Company has a present
obligation whether legal or constructive that can
be estimated reliably, and it is probable that an
outflow of economic benefits will be required to
settle the obligation. If the obligation is expected
to be settled more than 12 months after the end
of reporting date or has no definite settlement
date, the provision is recorded as non-current
liabilities after giving effect for time value of
money, if material. Where discounting is used, the
increase in the provision due to the passage of
time is recognized as a finance cost.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

3.10 Government Grant

The Company recognizes government grants at their
fair value only when there is reasonable assurance that
the conditions attached to them will be complied with,
and the grants will be received.

Government grants received in relation to assets are
recognised directly to respective assets for which it

is received. Government grants, which are revenue in
nature are either recognised as income or deducted in
reporting the related expense based on the terms of
the grant, as applicable.

3.11 Revenue recognition

Revenue is measured based on the transaction price
adjusted for discounts and rebates, which is specified in
a contract with customer. Revenue are net of estimated
returns and taxes collected from customer.

Revenue from sale of goods is recognized at point in
time when control is transferred to the customer and
it is probable that consideration will be collected.
Control is usually transferred upon the shipment, at the
time of dispatch, delivery to or upon receipt of goods
by the customer, in accordance with the delivery and
acceptance terms agreed with the customer.

The transaction price is documented on the sales
invoice and payment is generally due as per agreed
credit terms with customer.

The consideration can be fixed or variable. Variable
consideration is only recognised when it is highly
probable that a significant reversal will not occur.
Revenue from services are recognised as the related
services are performed, the contractual performance
obligations are satisfied and there is no uncertainty
related to the collection of the said revenue.

The Company has concluded that it is the principal in
all of its revenue arrangements since it is the primary
obligor in all the revenue arrangements as it has
pricing latitude and is also exposed to inventory and
credit risks.

Export entitlements

Export entitlements are recognised as income when
right to receive credit as per the terms of the scheme
is established in respect of the exports made and
where there is no significant uncertainty regarding the
ultimate collection of the relevant export proceeds.
Interest Income

Interest income is recognized using effective interest
rate method.

The ''effective interest rate'' is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of financial instrument to:

- The gross carrying amount of the financial assets; or

- The amortised cost of the financial liabilities

In calculating interest income and expense, the
effective interest rate is applied to the gross carrying
amount of the asset (when the asset is not credit-
impaired) or to the amortised cost of the liability.

However, for financial assets that have become credit-
impaired subsequent to initial recognition, interest
income is calculated by applying the effective interest
rate to the amortised cost of the financial asset. If the
asset is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.

Estimate of Expected Return

Sales return is variable consideration that is recognised
and recorded based on historical experience, market
conditions and provided for in the year of sale as
reduction from revenue. The methodology and
assumptions used to estimate returns are monitored
and adjusted regularly in line with trade practices,
historical trends, past experience and projected market
conditions.

3.12 Income Taxes

Income tax expense comprises current and deferred
tax expense. Income tax expenses are recognized in
statement of profit or loss, except when they relate to
items recognized in other comprehensive income or
directly in equity.

Current Tax

Current tax is the tax payable on the taxable profit for the
year, using tax rates enacted or substantively enacted
by the end of reporting period by the governing
taxation laws, and any adjustment to tax payable in
respect of previous periods. Current income tax assets
and liabilities are measured at the amount expected to
be recovered from or paid to the taxation authorities.
Management periodically evaluates positions taken
in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and establishes provisions where appropriate.

Deferred Tax

Deferred taxes arising from deductible and taxable
temporary differences between the tax base of
assets and liabilities and their carrying amount in the
standalone financial statements are recognized using
substantively enacted tax rates and laws expected
to apply to taxable income in the years in which the
temporary differences are expected to be received or
settled.

Deferred tax asset are recognized only to the extent that
it is probable that future taxable profit will be available
against which the deductible temporary differences
can be utilized. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax assets to be utilized.

Deferred tax assets and liabilities are offset when the
Company has a legally enforceable right to do the same.

3.13 Earnings per share

Basic earnings per share is computed by dividing
profit or loss attributable to equity shareholders of the
Company by the weighted average number of equity
shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable
to ordinary shareholders and the weighted average
number of ordinary shares outstanding for the effects
of all dilutive potential ordinary shares.

3.14 Research and development

Expenditure on research activities is recognised in
profit and loss as incurred.

Development expenditure is capitalized as part cost of
the resulting intangible asset only if the expenditure
can be measured reliably, the product or process is
technically and commercially feasible, future economic
benefits are probable and the company intends to and
has sufficient resources to complete development and
to use or sell the asset. Otherwise, it is recognised in
profit and loss as incurred.

Subsequent to initial recognition, development
expenditure is measured at cost less accumulated
amortisation and any accumulated impairment loss.

3.15 Operating Segments

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker (CODM). The CODM of
the Company is responsible for allocating resources
and assessing performance of the operating segments
and accordingly is identified as the Chief Operating
Decision Maker (CODM). All operating segments''
operating results are reviewed regularly by the CODM
to make decisions about resources to be allocated to
the segments and assess their performance.

3.16 Share Capital

The paid-up equity capital of the company as on 31st
March, 2025 was Rs. 1046.16 Lakhs. The said shares
are listed on the BSE Limited and the National Stock
Exchange of India Limited. There was no change in the
paid-up capital of the company, during the year under
audit.

4. Recent Pronouncements

Ministry of Corporate Affairs (''MCA") notifies new standards
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to
time. For the year March 31,2025, MCA has not notified any
new standards or amendments to the existing standards
applicable to the Company.

Nature and purpose of reserves:

(i) General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is
no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the Statement of Profit
& Loss.

(ii) Retained Earnings:

Retained Earnings are the profits that the Company has earned till date less any transfer to general reserve, dividends , other
distributions to shareholder and remeasurements of definied benefit obligations comprising acturial gains or losses and
return on plan assets considering interest income.

(iii) Securities Premium:

This reserve represents Security Premium received at the time of issuance of Equity Shares.

(i) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending
litigations of the respective proceedings.

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

(iii) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the
Company''s financial position and results of operations. These demands are with respect to income tax and service tax
matters for which appeals have been filed.

(iv) The Company has ongoing disputes with various tax authorities (income tax,and excise ) in India. The Company have
disclosed contingent liability as above, respectively, in respect of various tax demands, which are being contested by
the Company based on the management evaluation and advice of tax consultants.

(v) The amounts assessed as contingent liability do not include interest and penalty that could be claimed by counter
parties.

36 EMPLOYEE BENEFITS PLANS:

(a) Defined contribution plans:

The Company makes contributions towards provident fund, a defined contribution retirement benefit plan for qualifying
employees. The provident fund is operated by the Regional Provident Fund Commissioner. The Company recognized ? 549.45
Lakhs (Previous Year ? 500.34 Lakhs) for provident fund contributions in the Statement of Profit and Loss. The contributions
payable to these plans by the company are at rates specified in the rules of the scheme.

(b) Defined benefit plans:

The Company makes annual contributions to the Employee''s Group Gratuity cash accumulation scheme of the LIC, a funded
defined benefit plan for qualifying employees. The Scheme provides for payment to vested employees at retirement/death
while in employment or on termination of employment as per the provisions of the Payment of Gratuity Act, 1972. Vesting
occurs on completion of 5 years of service. The present value of the defined benefit obligation and the related current service
cost are measured using the Projected Unit Credit Method as per actuarial valuation carried out at the balance sheet date.

Characteristics of Defined Benefit Plans and risk associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory
framework, which may vary over time. Thus, Company is exposed to various risks in providing the above benefit plans which
are as follows:

(i) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the
ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (i.e. value of
defined benefit obligation).

(ii) Salary escalation risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan particulars
in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used
to determine the present value of obligation will have a bearing on the plan''s liability.

(iii) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed
to the risk of actual experience turning out to be worse compared to the assumptions.

(iv) Investment risk:

The Company has funded with LIC fund, there is no significant investment risk. Further the present value of the defined
benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end
of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit.
Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt
instruments.

The following table sets out the status of the gratuity plan as required under Ind AS-19 and the amounts recognized in the
Company''s financial statements as at 31 March 2025:

* The discount rate is based on the prevailing market yields of government of India securities as at the balance sheet date for
the estimated term of the obligations.

"Expected rate of return on plan assets is determined based on the nature of assets and prevailing economic scenario.

*** The estimate of future salary increases considered, takes into account inflation, seniority, promotion, increments and
other relevant factors.

vii. Sensitivity Analysis for each significant actuarial assumption:

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and
expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes
of the respective assumptions 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 defined benefit
obligations 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 defined benefit obligations has been
calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied
in calculating the defined benefit obligation liability recognised in the balance sheet.

(ii) Fair value hierarchy :

The fair values of the financial assets and liabilities are determined based on the price that would be received to sell an asset
or paid to transfer a liability at the reporting date considering the fair value hierarchy as under:

Level 1: It includes financial instruments measured using quoted prices. This includes listed equity instruments that have
quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price
as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the
counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely

38 FINANCIAL INSTRUMENTS: FAIR VALUE AND RISK MANAGEMENT: (CONTINUED..)

as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Fair value hierarchy

The following tables categorise the financial assets and liabilities held at fair value by the valuation methodology applied in
determining their fair value.

Determination of fair values:

Basis of assumptions used to estimated the fair value of financial assets and liabilities that are measured
at fair value on recurring basis :

Investment in Mutual Funds: The fair values represent net asset value as stated by the issuers of these mutual fund units
in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual
fund and the price at which issuers will redeem such units from the investors.

Derivative instruments: For forward contracts, future cash flows are estimated based on forward exchange rates and
forward interest rates (from observable forward exchange rates / yield curves at the end of the reporting period) and
contract forward exchange rates and forward interest rates, discounted at a rate that reflects the credit risk of various
counterparties.

Derivative instruments are financial contracts that derive their value from an underlying asset. Their main purpose is to
mitigate financial risk and protect against price volatility. Given the uncertainties associated with export revenue from the
sale of goods, company has engaged into derivative instruments, to hedge their risk against price fluctuations and safeguard
their financial stability.

(iii) Financial Risk Management

The Company''s activities are exposed to variety of financial risks. These risks include market risk (including foreign currency
risk, interest rate risks and price risk), credit risks and liquidity risk. The Company''s overall risk management program seeks to
minimize potential adverse effects on the financial performance of the Company through established policies and processes
which are laid down to ascertain the extent of risks, setting appropriate limits, controls, continuous monitoring and its
compliance.

A Market Risk :

Market risk refers to the possibility that changes in the market rates may have impact on the Company''s profits or the
value of its holding of financial instruments. The Company is exposed to market risks on account of foreign currency
rates, interest rates and underlying equity prices.

A1 Foreign currency risk :

The Company''s foreign currency risk arises from its foreign currency transactions and foreign currency borrowings.

38 FINANCIAL INSTRUMENTS: FAIR VALUE AND RISK MANAGEMENT: (CONTINUED..)

The fluctuation in foreign currency exchange rates may have potential impact on the income statement 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.

The overall objective of the foreign currency risk management is to minimize the short term currency impact on
its revenue and cash-flow in order to improve the predictability of the financial performance.

The major foreign currency exposures for the Company are denominated in USD. Additionally, there are
transactions which are entered into in other currencies and are not significant in relation to the total volume of the
foreign currency exposures. The Company hedges some trade receivables and future cash flows upto a maximum
of 6 months forward based on historical trends, budgets and monthly sales estimates.

A2 Interest rate risk :

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rate. The Company is exposed to fluctuations in interest rates in respect of
term loan carrying a floating rate of interest. In respect of term loan, the Company has outstanding borrowing
of ? 38.11 lakhs as at 31 March, 2025 (As at 31 March 2024: ? 622.98 lakhs) The following table demonstrates

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices
which arises on account of movement in interest rates, liquidity and credit quality of underlying securities. The
primary goal of the Company''s investment in mutual funds is to hold investments for short term for strategic
purpose. Management monitors their performance and they are managed on fair value basis. Further there is no
price risk for investment in Clean Max Everglades Pvt Ltd.

B Credit Risk :

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

The Company establishes a loss allowance that represents its estimate of expected losses in respect of trade receivables.
The maximum exposure to credit risk as at reporting date is from trade receivables amounting to ? 317.51 Lakhs (March
31,2024: ? 139.07 Lakhs). The movement in loss allowance in respect of trade receivables during the year was as follows:

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets
in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary
liquidity.

(iv) Capital Management

The capital structure of the Company consists of equity and debt. The Company''s objective for capital management
is to maintain the capital structure which will support the Company''s strategy to maximize shareholder''s value,
safeguarding the business continuity and help in supporting the growth of the Company.

The Company monitors capital using gearing ratio, which is net debt (total debt less Cash and cash equivalents)
divided by total equity.

40 OPERATING SEGMENT

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making
decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and
is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of
nature of products and other quantitative criteria specified in the Ind AS 108.

The Company is engaged in the business of manufacturing and trading in pharmaceutical products. The entire business
is considered as a single operating segment for the purpose of making decision on allocation of resources and assessing its
performance.

Geographical segment

Geographical segment is considered based on sales within India and outside India. In outside India, company separately disclosed
sales to America and Others.

[*] The revenue information above is based on the locations of the customers.

[**] Non Current Operating Assets for this purpose consist of property, plant and equipment, capital work-in-progress, intangible
assets, right-of use assets and investment in joint venture, Investment in Palvella Therapeutics Inc and Clean Max Everglades
Pvt Ltd.

[***] Non Current Investment in Concord Biotech Japan K.K. is considered as unallocable.

Information about major customers:

There are no customers accounting for more than 10% of the Revenue in the year ended 31 March 2025 and Previous year 31
March 2024.

41 RESEARCH & DEVELOPMENT

The Company''s facility is approved for Research & Development by Department of Science & Industrial Research (DSIR). The
Company has incurred expenditure of revenue nature on Research & Development, details of which are as under:

42 DISCLOSURE REQUIREMENT AS PER SCHEDULE III

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

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

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

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(v) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries)
or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company does not have any 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).

(vii) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act,
2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve
Bank of India.

(viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the
year.

(ix) The Company doesn''t have any co-owned properties or the properties (including properties for which the lease agreement
executed and disclosed as ''Right-of-Use Assets'' in restated consolidated financial information) title deed of which are held by
the others.

(x) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and the related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

(xi) The Company has used the borrowings from the banks for its intended purpose during the financial year.

(xii) The Company did not have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956 during the current and previous financial year.

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

(xiv) The Company has not entered in to any scheme of arrangement which has an accounting impact on current or previous
financial year.

43 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company
towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social
Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry.
The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate
impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the
financial impact are published.

44 During the previous year ended March 31,2024, the Company''s equity shares had been listed on National Stock Exchange ("NSE")
and on BSE Limited ("BSE") on August 18, 2023, by completing Initial Public Offering ("IPO") through offer for sale ("OFS") of
2,09,25,652 equity shares of face value of ? 1 each at an issue price of ? 741 per equity share by Helix Investment Holdings Pte
Limited, Singapore ("selling shareholder").

The Company had received proceeds in the share escrow account amounting to ? 1,55,052.08 Lakhs out of which ? 1,48,814.66
Lakhs paid to selling shareholders and ? 5,669.89 Lakhs to various parties for initial public offer expenses. The company has paid
all dues to the parties for initial public offer expenses.

The Company has receivable balance of share issue expenses in connection with the public offer of equity shares amounting to ?
NIL (as at March 2024 : ? NIL). As per the Offer Agreement entered between the Company and the selling shareholders, the selling
shareholders shall reimburse the share issue expenses except for the listing fees which has been solely borne by the Company.
Accordingly, the Company has recovered the expenses incurred in connection with the Issue on completion of IPO during the
current year.

The Company''s payable balance to selling shareholders and various parties for initial public offer expenses has been disclosed
under the Note 22 Other financial liabilities as "Payable to selling shareholders and others"

Being 100% offer for sale, the Company has not presented the utilization of the proceeds of IPO. There is no unutilised amount as
on March 31, 2025.

45 DISCLOSURE FOR MAINTENANCE OF BOOKS OF ACCOUNTS WITH AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) has issued a notification dated 24 March 2021 (Companies(Accounts) Amendments Rules,
2021) which is effective from 1 April 2023, states that every Company 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, and
further 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.

In respect of accounting software, the Company has advanced version of the accounting software having feature of recording
audit trail of each and every transaction, and creating an edit log of each change made along with the date when such changes
were made and also audit trail cannot be disabled. Further, other than the period where audit trail was not enabled in the previous
year, the audit trail has been preserved by the Company as per the statutory requirements for record retention.

46 EVENTS AFTER THE REPORTING PERIOD:

The board of directors have recommended final dividend of '' 10.70/- per fully paid up equity share of '' 1/- each for financial year
ended March 31,2025 on outstanding paid up share capital of the company as on date, in its board meeting held on May 29, 2025,
subject to approval of shareholders at ensuing annual general meeting of the Company.

For B S R & Co. LLP For and on behalf of board of directors of

Chartered Accountants Concord Biotech Limited

Firm''s Registration No : 101248W/W-100022

Rupen Shah Sudhir Vaid Ankur Vaid

Partner Chairman & Managing Director Joint Managing Director & CEO

Membership No. : 116240 DIN: 00055967 DIN: 01857225

Lalit Sethi Prakash Sajnani

Chief Financial Officer Asst. Vice President - Finance &

Company Secretary

Place: Ahmedabad Place: Ahmedabad

Date: 29 May 2025 Date: 29 May 2025

---

Mar 31, 2024

(i) Out of total Bank deposits of INR 99.25 Lakhs, term deposits amounting to INR 98.16 Lakhs (as at 31^st March 2023 INR 16.57 Lakhs) are lodged as margin money against Bank Guarantees and other Commitments.

(ii) Loss allowance of INR 226.95 Lakhs is made for incentive receivable under Market Access Initiative Scheme(MAI scheme).

(iii) The Company had a short receipt of INR 110.17 Lakhs for claim of FY 22-23. The management has written to the respective authority for clarification. The management has considered such an amount as recoverable, given that both the criteria for being eligible for the claim of FY 22-23 were complied with and presented under non current other financial assets.

(i) Company is eligible to get various incentive namely - Capital subsidy, interest subsidy, incentive on power tariff, employment generation incentive subsidy etc. from GSBTM (Gujarat State Biotechnology Mission) under Biotechnology Policy of Gujarat for establishing new API Plant at Limbasi. Company has received claims of subsidies on timely manner from GSBTM. The Company has received Capital subsidy pertaining for the claim of previous years from the GSBTM in FY 2022-23. As at 31^st March 2024, the Company has outstanding receivable on account of various subsidies as follows - Interest Subsidy INR 14.96 Lakhs for interest paid on term loan, Power Tariff Subsidy INR 68.59 Lakhs, Employment Generation Incentive INR 15.59 Lakhs (as at 31^st March 2023 Interest Subsidy INR 46.12 Lakhs for interest paid on term loan, Power Tariff Subsidy INR 65.62 Lakhs , Employment Generation Incentive INR 12.63 Lakhs).

(ii) The Company is eligible for claiming benefits under the Production Linked Incentive (PLI) Scheme of the Government of India. Based on the Claims Submitted by PLI department, the Company has recognised the PLI Income.

(iii) Other receivable includes INR 336.72 Lakhs (PY INR 461.72 Lakhs) of amount recoverable from customer towards bank guarantees invoked.

(i) Export Incentives Receivables includes INR 114.05 Lakhs (PY INR 126.39 Lakhs) for Duty Drawback, INR 89.93 Lakhs (PY INR 123.78 Lakhs) for RoDTEP INR 51.29 Lakhs (PY INR Nil) for RoDTEP Scripts on Hand, INR 53.15 Lakhs (PY INR 53.15 Lakhs) for Merchandise Exports From India Scheme (MEIS) and INR 2.81 Lakhs (PY INR 2.81 Lakhs) for Rebate on Excise Duty.

The Authorised Share Capital of the Company was increased from INR 10,00,00,000 (consisting of 1,00,00,000 equity shares of face value of INR 10 each) to INR 11,00,00,000 (consisting of 11,00,00,000 equity shares of face value of INR 1 each) through an ordinary resolution passed by the Shareholders of the Company in Extra Ordinary General Meeting of Company held on 8^th July 2022.

(ii) Terms/rights attached to equity shares with voting rights:

The Company has only one class of equity shares having a par value of INR 1 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(v) Pursuant to the approval of the shareholders at the Extra Ordinary General Meeting of the Company held on 8^th July 2022, each equity share of face value of INR 10/- per share was sub-divided into 10 equity shares of face value of INR 1/- per share and approved the issuance of 1 bonus shares of face value INR 1 each for every 10 existing fully paid-up equity share of face value INR 1 each and accordingly 95,10,564 bonus shares were issued and allotted on 20^th July 2022 out of securities premium.

Nature and purpose of reserves:

(i) General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the Statement of Profit & Loss.

(ii) Retained Earnings:

Retained Earnings are the profits that the Company has earned till date less any transfer to general reserve, dividends and other distributions to shareholder.

(iii) Securities Premium:

This reserve represents Security Premium received at the time of issuance of Equity Shares.

(i) The Company has availed Term Loan from State Bank of India. Term Loan of INR 10,000 Lakhs (outstanding amounting as at 31^st March 2024 INR 622.98 Lakhs, 31^st March 2023 INR 3,123.56 Lakhs) is secured by first charge on Factory Land & Building and Plant & Machinery of Unit-III at Limbasi, Dist. Kheda, (Survey No. 666,667,668 and 84 at Village Malavada and Survey No. 94A,94B,119,120,126,135 and 136 at Ranasar ) and charge on the same has been created. Interest rate is 3 months MCLR 0.20% p.a and loan is repayable in 16 quarterly instalments of INR 625 Lakhs each starting from October, 2020.

(ii) The Company has Fund-based and Non-fund-based limits of Working Capital from Banks. For the said facility, the revised submissions made by the Company to its bankers based on closure of books of accounts at the respective year end, the revised quarterly returns or statements comprising stock statements, book debt statements, statements on ageing analysis of the debtors, and other stipulated financial information filed by the Company with such banks are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed.

(i) Provision for Sales Returns:

One of the distributor based out at America terminated exclusive distribution and supply agreement in the previous year ended 31^st March 2023 and as per the Agreement, the Company was required to purchase the remaining unsold inventory based on mutual understanding between the parties. Accordingly, a provision of INR 2,163.70 Lakhs was made for inventory lying with the said distributor in the previous year ended 31^st March 2023 which were primarily in nature of expired or near expiry products. During the current year ended 31^st March 2024, the Company has received products from the said distributor. Consequently, the sales return provision of INR 2,163.70 Lakhs was utilised in the current year ended 31^st March 2024.

(I) There are certain income-tax related legal proceedings which are pending against the Company. Potential liabilities, if any have been adequately provided for, and the Company does not currently estimate any probable material incremental tax liabilities in respect of these matters. Refer note 34 (b).

(ii) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

(iii) The Tax rate used for Financial Year 2023-24 and 2022-23, in reconciliation above is the corporate tax rate of 25.168% payable by corporate entity in India on taxable profits under the Indian Tax Law.

Company has paid fees of INR 77.25 Lakhs (Previous Year INR 144.20 Lakhs) for issuing various reports and certificates in connection with the completed initial public offering (IPO) during the current year. This expenses have been recovered from the selling shareholders and are not included in the above information.

3^ COMMITMENTS AND CONTINGENCIES

(a) Commitments
Particulars	As at 31st March 2024	As at 31st March 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for in respect of the Property, Plant & Equipment (Net of Advances)	1,244.29	1,228.39
Total	1,244.29	1,228.39

(b) Contingent liabilities		(INR in Lakhs)
Particulars	As at 31st March 2024	As at 31st March 2023
Claims against the Company / disputed liabilities not acknowledged as debts:
Disputed demand of Excise duty for which an appeal has been preferred	376.37	376.37
- The Company has preferred Appeal to ITAT against order received from Assessing officer in respect of short payment of Excise duty, non reversal of input credit
Disputed demand of Income Tax in which company has preferred Appeal or filed rectification with Department :	1,054.56	1,054.56
- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of additional depreciation in A.Y. 2013-14. Appeal order was received but effect order is pending
- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of Penalty imposed u/s 271(1)(C ) in A.Y. 2015-16 & 2016-17. Appeal order was received but effect order is pending
- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of Purchase of Raw Material in A.Y. 2016-17
- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of u/s 35(2)(AB) and Rule 8D r.w.s 14A in A.Y. 2018-19. Appeal order was received but effect order is pending
- The Company has filed rectification with Assessing officer against intimation received from CPC regarding payment of Dividend Distribution Tax for A.Y. 2020-21. The Company has also filed Appeal to CIT(A) against order received from Assessing officer in respect of disallowance u/s Rule 8D r.w.s 14A in A.Y. 2020-21 and regarding not granting credit of payment of Dividend Distribution Tax. Appeal order was received but effect order is pending.
Total	1,430.93	1,430.93

(i) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending litigations of the respective proceedings.

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

(iii) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position and results of operations. These demands are with respect to income tax and service tax matters for which appeals have been filed.

~| EMPLOYEE BENEFITS PLANS:(a) Defined contribution plans:

The Company makes contributions towards provident fund, a defined contribution retirement benefit plan for qualifying employees. The provident fund is operated by the Regional Provident Fund Commissioner. The Company recognised INR 500.34 Lakhs (Previous Year INR 425.67 Lakhs) for provident fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the scheme.

(b) Defined benefit plans:

The Company makes annual contributions to the Employee''s Group Gratuity cash accumulation scheme of the LIC, a funded defined benefit plan for qualifying employees. The Scheme provides for payment to vested employees at retirement/death while in employment or on termination of employment as per the provisions of the Gratuity Act, 1972. Vesting occurs on completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method as per actuarial valuation carried out at the balance sheet date.

Characteristics of Defined Benefit Plans and risk associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework, which may vary over time. Thus, Company is exposed to various risks in providing the above benefit plans which are as follows:

(i) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (i.e. value of defined benefit obligation).

(ii) Salary escalation risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan particulars in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

(iii) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

vii. Sensitivity Analysis for each significant actuarial assumption:

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions 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 defined benefit obligations 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 defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

(c ) Compensated absences:

Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made based on leave balances derived as per Company’s Rules with corresponding charge to the Statement of Profit and Loss amounting to INR 55.25 Lakhs (Previous Year INR 72.76 Lakhs) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

The Company has taken various derivatives to hedge its risk associated with foreign exchange fluctuations. These transactions have been undertaken to act as economic hedges for the Company’s exposures to various risks in foreign exchange markets. Forward exchange contracts (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes are entered, which are available at the settlement date of certain payables and receivables.

(ii) Fair value hierarchy :The fair values of the financial assets and liabilities are determined based on the price that would be received to sell an asset or paid to transfer a liability at the reporting date considering the fair value hierarchy as under:

Level 1: It includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Determination of fair values:

Basis of assumptions used to estimated the fair value of financial assets and liabilities that are measured at fair value on recurring basis :

Investment in Mutual Funds: The fair values represent net asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from the investors.

Derivative instruments: For forward contracts, future cash flows are estimated based on forward exchange rates and forward interest rates (from observable forward exchange rates / yield curves at the end of the reporting period) and contract forward exchange rates and forward interest rates, discounted at a rate that reflects the credit risk of various counterparties.

(iii) Financial Risk Management

The Company’s activities are exposed to variety of financial risks. These risks include market risk (including foreign currency risk, interest rate risks and price risk), credit risks and liquidity risk. The Company’s overall risk management program seeks to minimise potential adverse effects on the financial performance of the Company through established policies and processes which are laid down to ascertain the extent of risks, setting appropriate limits, controls, continuous monitoring and its compliance.

A Market Risk :

Market risk refers to the possibility that changes in the market rates may have impact on the Company’s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign currency rates, interest rates and underlying equity prices.

A1 Foreign currency risk :

The Company’s foreign currency risk arises from its foreign currency transactions and foreign currency borrowings. The fluctuation in foreign currency exchange rates may have potential impact on the income statement 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.

The overall objective of the foreign currency risk management is to minimise the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance.

The major foreign currency exposures for the Company are denominated in USD. Additionally, there are transactions which are entered into in other currencies and are not significant in relation to the total volume of the foreign currency exposures. The Company hedges some trade receivables and future cash flows upto a maximum of 6 months forward based on historical trends, budgets and monthly sales estimates.

Foreign currency sensitivity

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

A2 Interest rate risk :

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to fluctuations in interest rates in respect of term loan carrying a floating rate of interest. In respect of term loan, the Company has outstanding borrowing of INR 622.98 Lakhs as at 31^st March 2024 (As at 31^st March 2023: INR 3,123.56 Lakhs) The following table demonstrates the sensitivity to a reasonable possible change on interest rates on that position of borrowing affected. with all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate of borrowing as follows:

B Credit Risk :

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

The Company establishes a loss allowance that represents its estimate of expected losses in respect of trade receivables. The maximum exposure to credit risk as at reporting date is from trade receivables amounting to INR 139.07 Lakhs (31^st March 2023: INR 87.30 Lakhs). The movement in loss allowance in respect of trade receivables during the year was as follows:

C Liquidity Risk :

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity.

(iv) Capital Management

The capital structure of the Company consists of equity and debt. The Company’s objective for capital management is to maintain the capital structure which will support the Company’s strategy to maximise shareholder’s value, safeguarding the business continuity and help in supporting the growth of the Company.

The Company monitors capital using gearing ratio, which is net debt (total debt less Cash and cash equivalents) divided by Total Equity.

40| SEGMENT REPORTING

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

The Company is engaged in the business of manufacturing and trading in pharmaceutical products. The entire business is considered as a single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

Information about major customers:

There are no customers accounting for more than 10% of the Revenue in the year ended 31^st March 2024 and Previous year 31^st March 2023.

4l| RESEARCH & DEVELOPMENT

The Company’s facility is approved for Research & Development by Department of Science & Industrial Research (DSIR). The Company has incurred expenditure of revenue nature on Research & Development, details of which are as under:

~| DISCLOSURE REQUIREMENT AS PER SCHEDULE III

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

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

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

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(v) The Company has not received any fund from any person(s) or entity (ies) including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company does not have any 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).

(vii) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(ix) The Company doesn’t have any co-owned properties or the properties (including properties for which the lease agreement executed and disclosed as ''Right-of-Use Assets’ in restated consolidated financial information) title deed of which are held by the others.

(x) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

(xi) The Company has used the borrowings from the banks for its intended purpose during the financial year.

(xii) The Company did not have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the current and previous financial year.

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on 13^th November 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

During the year ended 31^st March 2024, the Company’s equity shares have been listed on National Stock Exchange ("NSE") and on BSE Limited ("BSE") on 18^th August 2023, by completing Initial Public Offering ("IPO") through offer for sale ("OFS") of 2,09,25,652 equity shares of face value of INR 1 each at an issue price of INR 741 per equity share by Helix Investment Holdings Pte Limited, Singapore ("selling shareholder").

The Company has received proceeds in the share escrow account amounting to INR 1,55,052.08 Lakhs out of which INR 1,48,814.66 Lakhs paid to selling shareholders and INR 5,669.89 Lakhs to various parties for initial public offer expenses. The remaining funds amounting to INR 567.53 Lakhs which are yet to be paid to the selling shareholders after payments of initial public offer expenses is held in share escrow account and disclosed under Note 13 Cash and Bank balances as "share escrow account".

The Company has receivable balance of share issue expenses in connection with the public offer of equity shares amounting to INR NIL (31^st March 2023: INR 1,268.16 Lakhs). As per the Offer Agreement entered between the Company and the selling shareholders, the selling shareholders shall reimburse the share issue expenses except for the listing fees which has been solely borne by the Company. Accordingly, the Company has recovered the expenses incurred in connection with the Issue on completion of IPO during the current year. The entire amount was disclosed under the Note 14 Other Financial Assets as "IPO expense reimbursement receivable".

The Company has payable balance to selling shareholders and various parties for initial public offer expenses was disclosed under the Note 22 Other financial liabilities as "Payable to selling shareholders and others".

Being 100% offer for sale, the Company has not presented the utilisation of the proceeds of IPO. The unutilised amount as on 31^st March 2024, is held in bank account with schedule commercial bank.

45| DISCLOSURE FOR MAINTENANCE OF BOOKS OF ACCOUNTS WITH AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) has issued a notification dated 24^th March 2021 (Companies(Accounts) Amendments Rules, 2021) which is effective from 1^st April 2023, states that every Company 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, and further 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.

In respect of Primary accounting software used from 1^st April 2023 to 12^th June 2023, there was no feature of recording the audit trail (edit log). Thereafter, the Company has upgraded to advanced version of the accounting software having feature of recording audit trail of each and every transaction, and creating an edit log of each change made along with the date when such changes were made and also audit trail cannot be disabled.

46| EVENTS AFTER THE REPORTING PERIOD:

The Board of Directors in their meeting held on 23^rd May 2024, proposed a final equity dividend of INR 8.75 per equity share of INR 1 each fully paid up for the financial year 2023-24

---

Mar 31, 2023

(i) Details of property, plant and equipments which are hypothecated/mortgaged as security for borrowings are disclosed under note 18 (i).

(ii) The amount of capital commitments is disclosed in Note 34.

(iii) During the year ended 31 March 2021, the Company has capitalized Interest on borrowings aggregating to '' 548.09 lakhs in connection with borrowings used for construction / acquistion of qualifying assets. Further, an amount of

'' 1430.90 lakhs towards capital subsidy, '' 331.09 lakhs towards interest subsidy and '' 229.45 lakhs towards reimbursement of stamp duty charges have been adjusted towards the cost of such assets capitalized during the year ended 31 March 2021.

(i) Out of total term deposits of '' 796.57 lakhs, term deposits amounting to '' 16.57 lakhs ( as at 31 March 2022''78.20 lakhs ) are lodged as margin money against Bank Guarantees and other Commitments.

(ii) Provision of '' 226.95 lakhs is made for incentive receivable under Market Access Initiative Scheme( MAI scheme).

(i) The Company''s exposure to credit and currency risk, and loss allowances are disclosed in Note 38.

(ii) Includes receivables from related parties [refer note 39 (c) ].

(iii) Trade Receivables are given as security for borrowings as disclosed under note 18(ii).

(i) Company is eligible to get various incentive namely - Capital subsidy, interest subsidy, power subsidy, employment

generation incentive subsidy etc. from GSBTM (Gujarat State Biotechnology Mission) under Biotechnology Policy of Gujarat for establishing new API Plant at Limbasi. Company has received claims of subsidies on timely manner from GSBTM. The

Company has received Capital subsidy pertianing for the claim of the GSBTM in FY 2022-2023. As at 31 March 2023, the Company has outstanding receivable on account of various subsidies as follows - Interest Subsidy '' 46.12 Lakhs for interest paid on term loan, Power Tariff Subsidy '' 65.62 Lakhs, Employment Generation Incentive '' 12.62 Lakhs (as at 31 March 2022 Capital Subsidy '' 1430.90 lakhs, Interest Subsidy '' 140.20 lakhs for interest paid on term loan, Power Tariff Subsidy '' 106.53 lakhs , Employment Generation Incentive '' 24.48 lakhs and Electricity Duty '' 117.14 lakhs)

(ii) The Company is eligible for claiming benefits under the Production Linked Incentive [PLI] Scheme of the Government of India. Based on the Claims Submitted by PLI department, the Company has recognised the PLI Income.

(iii) Expenses incurred in relation to IPO that will be recovered by the Company from the selling shareholder upon completion of IPO process as per offer agreement.

(iv) Other receivable includes 461.72 lakhs of amount recoverable from customer towards bank guarantees invoked.

(v) Pursuant to the approval of the shareholders at the Extra Ordinary General Meeting of the Company held on 8 July 2022, each equity share of face value of '' 10/- per share was sub-divided into 10 equity shares of face value of '' 1/- per share and approved the issuance of 1 bonus shares of face value '' 1 each for every 10 existing fully paid-up equity share of face value '' 1 each and accordingly 95,10,564 bonus shares were issued and allotted on 20 July 2022 out of securities premium.

The Authorized Share Capital of the Company was increased from '' 10,00,00,000 (consisting of 1,00,00,000 equity shares of face value of '' 10 each) to '' 11,00,00,000 (consisting of 11,00,00,000 equity shares of face value of '' 1 each) through an ordinary resolution passed by the Shareholders of the Company in Extra Ordinary General Meeting of Company held on 8 July 2022.

(ii) Terms/rights attached to equity shares with voting rights:

The Company has only one class of equity shares having a par value of '' 1 per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

Nature and purpose of reserves:

(i) General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy of regular transfer. Items included under General Reserve shall not be reclassified back into the Statement of Profit & Loss .

(ii) Retained Earnings:

Retained Earnings are the profits that the Company has earned till date less any transfer to general reserve, dividends and other distributions to shareholder.

(iii) Securities Premium:

This reserves represents Security Premium received at the time of issuance of Equity Shares.

(i) The Company has availed Term Loan from State Bank of India. Term Loan of '' 10,000 lakhs (outstanding amounting as at 31 March 2023''3123.56 lakhs 31 March 2022''5624.86 lakhs) is secured by first charge on Factory Land & Building and Plant & Machinery of Unit-III at Limbasi, Dist. Kheda, (Survey No. 666,667,668 and 84 at Village Malavada and Survey No. 94A,94B,119,120,126,135 and 136 at Ranasar ) and charge on the same has been created. Interest rate is 3 months MCLR 0.20% p.a and loan is repayable in 16 quarterly instalments of '' 625 lakhs each starting from October,2020

(ii) Short term Borrowings from banks are in nature of working capital facilities which are secured by first pari passu charge on entire current assets of the Company. Interest rate is MCLR 0.05% and this borrowing is repayable on demand

(iii) The Company has Fund-based and Non-fund-based limits of Working Capital from Banks. For the said facility, the revised submissions made by the Company to its bankers based on closure of books of accounts at the respective year end, the revised quarterly returns or statements comprising stock statements, book debt statements, statements on ageing analysis of the debtors, and other stipulated financial information filed by the Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed.

(i) Provision for Sales Returns:

One of the distributor based out at America has terminated exclusive distribution and supply agreement with effect from the date of 180 days from the letters for products supplied by the Company vide termination notice dated 5 August 2022 and 14 December 2022. As per the Agreement, the Company is required to purchase the remaining unsold inventory based on mutual understanding between the Parties. Provision is made for inventory lying with distributor of all the terminated products. Out of total sales return provision Goods amounting to '' 2163.70 lakhs which are expected to be received are primarily in nature of expired or near expiry products. The Company has also made additional provision for expected sales return on the basis of evaluation of the contractual terms with other customers, trade practices with customers, market conditions and historical experience.

Further, the Company has also made additional provision on the basis of evaluation of the contractual terms with the customers, trade practices with customers, market conditions and historical experience.

(i) There are certain income-tax related legal proceedings which are pending against the Company. Potential liabilities,

if any have been adequately provided for, and the Company does not currently estimate any probable material

incremental tax liabilities in respect of these matters. Refer note 34 (b).

(ii) The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets

and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the

same tax authority.

(iii) The Tax rate used for Financial Year 2022-23 and 2021-22 , in reconciliation above is the corporate tax rate of 25.168% payable by corporate entity in India on taxable profits under the Indian Tax Law.

34 (a)	Commitments and Contingencies
	Particulars	As at 31 March 2023	As at 31 March 2022
	Estimated amount of contracts remaining to be executed on capital account and not provided for in respect of the Property, Plant & Equipment (Net of Advances)	1,228.39	7,838.46
	Total	1,228.39	7,838.46
(b)	Contingent liabilities
	Particulars	As at 31 March 2023	As at 31 March 2022
	Claims against the company / disputed liabilities not acknowledged as debts:
	Disputed demand of Excise duty for which an appeal has been preferred	376.37	376.37
	- The Company has preferred Appeal to ITAT against order received from Assessing officer in respect of short payment of Excise duty, non reversal of input credit
	Disputed demand of Income Tax in which company has preferred Appeal or filed rectification with Department :	1,054.56	955.45
	- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of additional depreciation in A.Y. 2013-14
	- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of Penalty imposed u/s 271(1)(C ) in A.Y. 2015-16 & 2016-17
	- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of Purchase of Raw Material in A.Y. 2016-17
	- The Company has preferred Appeal to CIT(A) against order received from Assessing officer in respect of disallowance of u/s 35(2)(AB) and Rule 8D r.w.s 14A in A.Y. 2018-19
	- The Company has filed rectification with Assessing officer against intimation received from CPC regarding payment of Dividend Distribution Tax for A.Y. 2020-21. The Company has also filed Appeal to CIT(A) against order received from Assessing officer in respect of disallowance u/s Rule 8D r.w.s 14A in A.Y. 2020-21 and regarding not granting credit of payment of Dividend Distribution Tax.
	Total	1,430.93	1,331.82

(i) It is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending litigations of the respective proceedings.

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

(iii) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and results of operations. These demands are with respect to income tax and service tax matters for which appeals have been filed.

36 Employee benefits plans:

(a) Defined contribution plans:

The Company makes contributions towards provident fund, a defined contribution retirement benefit plan for qualifying employees. The provident fund is operated by the Regional Provident Fund Commissioner. The Company recognized '' 425.67 Lakhs (Previous Year '' 385.90 Lakhs) for provident fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the company are at rates specified in the rules of the scheme.

(b) Defined benefit plans:

The Company makes annual contributions to the Employee''s Group Gratuity cash accumulation scheme of the LIC, a funded defined benefit plan for qualifying employees. The Scheme provides for payment to vested employees at retirement/death while in employment or on termination of employment as per the provisions of the Gratuity Act, 1972. Vesting occurs on completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method as per actuarial valuation carried out at the balance sheet date.

Characteristics of Defined Benefit Plans and risk associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework, which may vary over time. Thus, Company is exposed to various risks in providing the above benefit plans which are as follows:

(i) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (i.e. value of defined benefit obligation).

(ii) Salary escalation risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan particulars in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

(iii) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

The following table sets out the status of the gratuity plan as required under Ind AS-19 and the amounts recognized in the Company''s financial statements as at 31 March 2023:

* The discount rate is based on the prevailing market yields of government of India securities as at the balance sheet date for the estimated term of the obligations.

**Expected rate of return on plan assets is determined based on the nature of assets and prevailing economic scenario.

*** The estimate of future salary increases considered, takes into account inflation, seniority, promotion, increments and other relevant factors.

vii. Sensitivity Analysis for each significant actuarial assumption:

The significant actuarial assumptions for the determination of the defined benefit obligations are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

x. Expected contribution during the next annual reporting period

The Company''s best expected contribution during the next year is '' 177.55 Lakhs.

(c) Compensated absences:

Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made based on leave balances derived as per Company''s Rules with corresponding charge to the Statement of Profit and Loss amounting to '' 144.71 lakhs ( Previous Year '' 48.98 Lakhs) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

37 The Company has taken various derivatives to hedge its risk associated with foreign exchange fluctuations. These transactions have been undertaken to act as economic hedges for the Company''s exposures to various risks in foreign exchange markets. Forward exchange contracts (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes are entered, which are available at the settlement date of certain payables and receivables.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations 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 defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

viii. Investment details of plan assets:

The plan assets are managed by Insurance Company viz Life Insurance Corporation of India who has invested the funds substantially as under:

(ii) Fair value hierarchy :

The fair values of the financial assets and liabilities are determined based on the price that would be received to sell an asset or paid to transfer a liability at the reporting date considering the fair value hierarchy as under:

Level 1: It includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Fair value hierarchy

The following tables categorise the financial assets and liabilities held at fair value by the valuation methodology applied in determining their fair value.

A Market Risk :

Market risk refers to the possibility that changes in the market rates may have impact on the Company''s profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign exchange rates, interest rates and underlying equity prices.

A1 Foreign currency exchange rate risk :

The Company''s foreign currency risk arises from its foreign currency transactions and foreign currency borrowings. The fluctuation in foreign currency exchange rates may have potential impact on the income statement 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.

The overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance.

The major foreign currency exposures for the Company are denominated in USD. Additionally, there are transactions which are entered into in other currencies and are not significant in relation to the total volume of the foreign currency exposures. The Company hedges some trade receivables and future cash flows upto a maximum of 6 months forward based on historical trends, budgets and monthly sales estimates.

Determination of fair values:

Basis of assumptions used to estimated the fair value of financial assets and liabilities that are measured at fair value on recurring basis :

Investment in Mutual Funds: The fair values represent net asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from the investors.

Derivative instruments: For forward contracts, future cash flows are estimated based on forward exchange rates and forward interest rates (from observable forward exchange rates / yield curves at the end of the reporting period) and contract forward exchange rates and forward interest rates, discounted at a rate that reflects the credit risk of various counterparties.

(iii) Financial Risk Management

The Company''s activities are exposed to variety of financial risks. These risks include market risk (including foreign exchange risk and interest rate risks), credit risks and liquidity risk. The Company''s overall risk management program seeks to minimize potential adverse effects on the financial performance of the Company through established policies and processes which are laid down to ascertain the extent of risks, setting appropriate limits, controls, continuous monitoring and its compliance.

Foreign currency sensitivity

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

A2 Interest rate risk :

Interest rate risk refers to the possibility that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rate. The Company is exposed to fluctuations in interest rates in respect of term loan carrying a floating rate of interest. In respect of term loan, the Company has outstanding borrowing of '' 3123.56 lakhs as at 31 March, 2023 (As at 31 March 2022: '' 5624.86 lakhs ) The following table demostrates the sensitivity to a reasonable possible change on interest rates on that postion of borrowing afffected. with all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate of borrowing as follows:

(iv) Capital Management

The capital structure of the Company consists of equity and debt. The Company''s objective for capital management is to maintain the capital structure which will support the Company''s strategy to maximize shareholder''s value, safeguarding the business continuity and help in supporting the growth of the Company.

The Company monitors capital using gearing ratio, which is net debt (total debt less cash and bank balance) divided by total capital plus net debt.

B Credit Risk :

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

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables. The maximum exposure to credit risk as at reporting date is from trade receivables amounting to '' 87.30 Lakhs (March 31,2022: 78.06 Lakhs). The movement in allowance for impairment in respect of trade receivables during the year was as follows:

Receivable from the customer of the Company more than 10 percent of the Company''s total trade receivables as at 31 March 2023 is Nil (March 31,2022 one customer - '' 2,585.60 Lakhs). Refer note 12 for ageing of trade receivables.

C Liquidity Risk :

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity.

40 Segment reporting

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

Bulk Drug business is identified as single operating segment for the purpose of making decision on allocation of resources and assessing its performance.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of

information collected by the Management. This has been relied upon by the auditors.

43 Disclosure requirement as per Schedule III

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

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

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

Information about major customers:

Revenue from major export and domestic customers is Nil (Previous year Nil Lakhs). Revenue from other individual customer is less than 10% of total revenue.

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(v) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) The Company does not have any 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.

(vii) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(ix) The Company doesn''t have any co-owned properties or the properties (including properties for which the lease agreement executed and disclosed as ''Right-of-Use Assets'' in restated consolidated financial information) title deed of which are held by the others.

(x) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

(xi) The Company has used the borrowings from the banks for its intended purpose during the financial year.

(xii) The Company did not have any transaction with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the current and previous financial year.

44 Other Notes:

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified. The Company will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

45 Interest in Joint Venture

The Board of Directors in their meeting held on 1 July 2023, proposed a final equity dividend of '' 6.83 per equity share of '' 1 each fully paid up for the financial year 2022-23.

46 Previous period figures have been re-grouped/ re-classified wherever necessary, to confirm to current period''s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective from April 1,2021.