Notes to Accounts of Corona Remedies Ltd.

Mar 31, 2026

(iii) During the year 2023-24, the Company has acquired leading muscle relaxant brand "Myoril" from Sanofi Healthcare India Private Limited for amounting '' 201.62 Crores (including an amount of '' 6.62 Crores being cost associated with acquisition of the brand).The said Brand is pledged against the Term Loan availed from Bank to acquire the Brand (Refer Note-20).

i. Investments at fair value through other comprehensive income (FVTOCI) (fully paid) reflect investment in unquoted equity shares. These equity shares are designated as fair value through other comprehensive income (FVTOCI) as they are not held for trading purpose.

ii. The Compulsory Convertible Preference Shares (CCPS) are 0.01% cumulative and compulsorily convertible into equity shares of La Chandra in the ratio of 1:1, exercisable at any time at the option of the Company.

iii. During the year March 31,2026, La Chandra has issued 46,525 Cumulative Compulsory Convertible Preference Shares (CCPS) to other shareholder which has resulted into change in the Company’s stake to 31.15% (33.5% as at March 31,2025) on a fully diluted basis, which includes 8.93% (9.6% as at March 31,2025) through Cumulative Compulsory Convertible Preference Shares (CCPS) and 22.22% (23.9% as at March 31,2025) through equity shares post dilution.

i. Inventories are hypothecated as security for borrowings as disclosed under Note 23.

ii. Provision for obsolescence '' 0.15 Crores (March 31, 2025: '' 0.57 Crores) considered in Finished goods. These were recognised as an (income) / expense in statement of profit and loss amounting '' (0.42) Crores (March 31,2025: '' 0.35 Crores).

i ii. Provision for obsolescence '' 1.38 Crores (March 31,2025: '' 1.69 Crores) considered in Stock-in-trade. These were recognised as an (income) / expense in statement of profit and loss amounting '' (0.31) Crores (March 31,2025: '' 1.33 Crores).

(ii) Rights, preferences and restrictions attached to shares

EquityShares: The Company has only one class of equity shares having par value of '' 10 per share. Each shareholder is entitled to one vote per share held. Dividend if any declared is payable in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) The Company has availed overdraft amounting '' 126.76 Crores bearing interest rate from 6.52% p.a. to 7.50% p.a. (March 31,2025:'' 10.70 Crores) against fixed deposits placed with banks amounting to '' 153.20 Crores (March 31,2025: '' 64.00 Crores).

(ii) The Company has working capital loan from bank amounting to '' 0.10 Crores bearing interest rate 9% p.a. (March 31, 2025: Nil) which are secured by way of hypothecation of inventories, book debts, all past, present and future current assets of the Company.

(iii) The Company has made all requisite submissions on quarterly basis to bank and there is no mismatch between quarterly submissions and books of accounts.

29 (a) Refer Note 12 - Trade Receivables to the Standalone Financial Statements for the amount of contract assets

outstanding as at year end and refer to details of Advance received from Customers in Note 27 - Other Current Liabilities to the Financial Statements for the contract liabilities outstanding as at year end.

29 (b) The Company is engaged in the business of manufacturing, trading and marketing of Pharmaceutical

products and revenue is recognised at point of time.

29 (c) Revenue from Sale of services is recognised at a point in time upon the completion of the service.

(B) Defined Benefit Plans

a. Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with corresponding charge to the Statement of Profit and Loss amounting to '' 3.15 Crores (March 31,2025 : '' 1.67 Crores) and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

b. Gratuity payable to employees:

The accruing liability on account of retirement benefit plans (in the nature of defined benefits plan) is accounted as per Ind-AS 19 "Employee Benefits".

General description of the plan:

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

v) A quantitative sensitivity analysis for significant assumption as at each year end presented:

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.

41 Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and assessing performance. The Company''s chief operating decision maker is the managing director and the Company has only one reportable business segment i.e. ‘Pharmaceuticals''.

42 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• 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 (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Determination of fair values:

The following are the basis of assumptions used to estimate the fair value of financial assets and liabilities that are measured at fair value on recurring basis:

Equity investments: Equity investments traded in an active market determined by reference to their quoted market prices. Other equity investments where quoted prices are not available, fair values are determined by reference to the expected discounted cash flows from the underlying net assets or current market value of net assets.

43 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, trade receivables and trade payables.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s borrowings with floating interest rates. The Company manages its interest rate risk by having a portfolio of variable rate borrowings.

(ii) Foreign currency risk

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

Foreign currency sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rate (or any other material currency), with all other variables held constant, of the Company''s profit before tax (due to changes in the fair value of monetary assets and liabilities). The Company''s exposure to foreign currency changes for all other currencies is not material.

(B) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of security deposits, trade receivables and investments and bank deposits.

All trade receivables are subject to credit risk exposure. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

With respect to investments (Except strategic investments), the Company limits its exposure to credit risk by investing in liquid securities with counterparties depending on their Composite Performance Rankings (CPR) published by renowned rating agency. The Company''s investment policy lays down guidelines with respect to exposure per counterparty, rating, processes in terms of control and continuous monitoring. The Company therefore considers credit risks on such investments to be negligible.

With respect to bank deposits and security deposits, The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the landlords before taking any property on lease and hasn''t had a single instance of non-refund of security deposit on vacating the leased property.

(C) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

50 Contingent liabilities (to the extent not provided for)
Particulars		As at March 31,2026	As at March 31,2025
Direct Tax Matters [Refer note (i) below]	2.01		-
(i) The Company has outstanding demand with respect to the Direct Tax matters against which the Company has paid '' 1.00 Crore and filed the appeal.

53 Initial Public Offering (“IPO”)

The Company''s equity shares have been listed on the National Stock Exchange of India ("NSE") and on BSE Limited ("BSE") on December 15, 2025, by completing Initial Public Offering through offer for sale of 61,74,051 equity shares of face value of '' 10 each at an issue price of '' 1,008 per equity share (for employees) and '' 1,062 per equity share (other than employees) by selling shareholders.

The Company has received proceeds in the share escrow account amounting to '' 655.37 Crores out of which '' 583.53 Crores paid to selling shareholders and '' 56.58 Crores to various parties for initial public offer expenses.

The remaining funds amounting to '' 15.26 Crores 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 14 "Bank balances other than cash and cash equivalents" as "Intial Public Offer - Escrow Account".

The Company has receivable balance of share issue expenses in connection with the public offer of equity shares which was disclosed under the Note 16 Other Financial Assets as "Other receivable". 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 has payable balance to selling shareholders and various parties for initial public offer expenses was disclosed under the Note 26 Other financial liabilities as "Payable to selling shareholders".

Being 100% offer for sale, the Company has not presented the utilisation of the proceeds of IPO. The unutilised amount as on March 31,2026, is held in bank account with schedule commercial bank.

54 One time impact of New Labour Codes

On November 21,2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental impact of these changes on the basis of the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact as ""Statutory impact of new Labour Codes"" under ""Exceptional Items"" amounting '' 19.10 crores (Post tax '' 14.29 crores). The incremental impact consisting of gratuity of '' 13.60 Crores and long-term compensated absences of '' 5.50 Crores primarily arises due to change in wage definition. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.

55 Transactions with struck off companies

The Company did not have any transaction or any balance with respect struck off companies during the year 2025-26 and 2024-25.

56 Other statutory information

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

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

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

(iv) The Company has not advanced or loaned or invested funds [either from borrowed funds or share premium or any other sources or kind of funds] to any other persons or entities, including foreign entities [Intermediaries], with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company [Ultimate Beneficiaries] or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(v) The Company has not received any funds from any persons or entities, including foreign entities [Funding Party] with the understanding [whether recorded in writing or otherwise], that the Company shall, 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 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 have not been declared as wilful defaulter by any bank or financial institution or any other lender

57 According to the management''s evaluation of events subsequent to the balance sheet date, there were no significant adjusting events that occurred other than those disclosed.

58 This standalone financial statements are approved by Board of Directors in the meeting held on May 11,2026.