Notes to Accounts of Sai Life Science Ltd.

Mar 31, 2025

p. Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present
obligation, as a result of past events, and when a reliable
estimate of the amount of obligation can be made at the
reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best
estimates. Provisions are discounted to their present
values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only
by future events not wholly within the control of
the Company; or

• Present obligations arising from past events where

it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

Contingent assets are neither recognized nor disclosed.
However, when realization of income is virtually certain,
related asset is recognized.

q. Income taxes

Tax expense recognized in standalone statement of profit
and loss consists of current and deferred tax except to the
extent that it relates to items recognised in OCI or directly
in equity, in which case it is recognised in OCI or directly in
equity respectively.

Calculation of current tax is based on tax rates and tax
laws that have been enacted for the reporting period and
any adjustment to tax payable in respect of previous years.
Current tax assets and tax liabilities are offset where the
Company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the standalone financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary
differences when they reverse, based on the laws that
have been enacted or substantively enacted by the

end of the reporting period. Deferred tax liability are
generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all
deductible temporary differences to the extent that is
probable that taxable profits will be available against which
those deductible temporary differences can be utilised.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to set off corresponding current
tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to income
taxes levied by the same tax authority on the Company.

Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised. Withholding tax
arising out of payment of dividends to shareholders
under the Indian Income tax regulations is not considered
as tax expense for the Company and all such taxes are
recognised in the statement of changes in equity as part
of the associated dividend payment.

r. Earnings per share

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

s. Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

t. Goods and Service Tax Input credit

Goods and Service tax input credit is accounted for in the
books in the year in which the underlying service received
is accounted and when there is no uncertainty in availing /
utilising the credits.

u. Operating cycle

Based on the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the
Company has determined its operating cycle as 12
months. The above basis is used for classifying the
assets and liabilities into current and non-current as
the case may be.

v. Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the
Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity
shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights
cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount
called up on shares may lead to forfeiture of the shares. On winding up of the Company, the holders of equity shares will be entitled
to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of
equity shares held.

vi. Rights, preferences and restrictions attached to preference shares

The Company had two classes of preference shares viz, Compulsorily convertible preference shares(CCPS) and ‘Optionally convertible
preference shares (OCPS). The said shares were partly paid to the tune of ''8.06 per share during the year ended 31 March 2024.

During the year ended 31 March 2025, the outstanding CCPS and OCPS are converted into fully paid up equity shares of 10 each upon
receipt of final call of ''1.94 per share and the conversion premium of ''242.60 per share.

vii. Warrants convertible into equity shares

Based on the approval of the members taken in the Shareholders meeting dated 11 June 2019, the Company has made allotment of
50,000 Share Warrants which are convertible into equity share in the ratio of 1:1 at a price of ''1,910 per share. These warrants are
equally vested over a period of 4 years ending on 19 October 2023. These warrants are not exercised and subsequently forfeited during
the year ended 31 March 2025.

xi. Shares reserved for issue under options

(a) Employee stock option plan - 2004 ("ESOP 2004”)

The Company established a plan ESOP 2004 under which 3,00,000 equity shares of ''10 each were earmarked and approved by the
Shareholders at the Extraordinary General Meeting held on 13 September 2004. These options shall vest at the end of three years
from the grant date. The vested options can be exercised by the employee during his term of employment with the Company.

Employee stock option plan - 2006 ("ESOP 2006”)

The Company established a plan ESOP 2006 under which 3,50,000 equity shares of ''10 each were earmarked and approved by the
Shareholders at the Annual General Meeting held on 16 August 2006. 60% of the options granted shall vest at the end of three years
from the grant date and 40% of the options granted shall vest at the end of five years from the grant date. The vested options can be
exercised by the employee during his term of employment with the Company.

Sai Employee stock option scheme - 2008 ("ESOP 2008”)

The Company established a plan ESOP 2008 approved by the Shareholders at the Annual and Extraordinary General Meetings
held on 11 September 2008 and 30 March 2009 respectively. As per the scheme, maximum number of employee stock options are
restricted to 10% of paid up share capital of the Company. Out of which, 50% of the options granted shall vest at the end of two years
from the grant date and the balance 50% of the options shall vest at the end of four years from the grant date. The vested options
can be exercised by the employee during his term of employment with the Company.

Under this scheme, the company granted additional employee stock options approved by the Shareholders at the Extraordinary
General Meeting held on 25 July 2018. The options granted shall vest 20% at the end of every year from the grant date for a year
of 5 years. The vested options can be exercised by the employee during his term of employment with the Company.

Management ESOP scheme - 2018 ("MES 2018”)

The Company established a plan MES 2018 approved by the Shareholders at the Extraordinary General Meeting held on 25
July 2018. As per the scheme maximum number of shares reserved under this scheme is 4% of the paid up equity capital of the
Company on a fully diluted basis as on the Effective Date. The options granted shall vest 20% at the end of every year from the grant
date for a year of 5 years. The vested options can be exercised by the employee during his term of employment with the Company.

Amended ESOP scheme ("Amended ESOP”)

The Company amended the plan MES 2018 and ESOP 2008 approved by the Shareholders at the Extraordinary General Meeting
held on 25 March 2022, 09 June 2023 and 04 July 2024. The amendment has similar terms as the MES 2018 & ESOP 2008
scheme wherein the maximum number of shares reserved under this scheme is 4% and 10% respectively of the paid up equity capital
of the Company on a fully diluted basis as on the Effective Date. The options granted shall vest in a period of 5 years and as per
the terms provided in the Notice of Grant. The vested options can be exercised by the employee during his term of employment
with the Company.

The terms of the above schemes provide that each option entitles the holder to one equity share of ''10 each and that the
options can be settled only by way of issue of equity shares. The options granted are time-based for ESOP 2004 and ESOP 2006.
The options granted are time and performance based for ESOP 2008 and MES 2018.

(b) During the year ended 31 March 2025, the Company had incurred stock compensation cost of '' 24.78 (31 March 2024: ''22.53)
towards the above schemes.

(b) Capital reserve

Capital reserve pertains to the excess of net assets taken, over the cost of consideration paid pursuant to amalgamation of Advantium
Pharma Private Limited with the Company in the earlier year and on forfeiture of certain share warrants issued in the earlier years.

The Company uses capital reserve for transactions in accordance with the provisions of the Act.

(c) Employee stock options outstanding account

Employee stock options outstanding account relates to share options granted by the Company to its employees under its employee share
option plan. These will be transfer to Equity and Security premium after exercise of the underlying options.

(d) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to shareholders.

(e) Cash flow hedge reserve

Cash flow hedge reserve represents effective portion of cash flow hedges taken to Other comprehensive income.

(f) Shares pending allotment

Represents amount received from employees upon exercise of option under the under ESOP plan -2008. Pending allotment as of 31
March 2025, this amount has been shown under share application money pending allotment.

Note:

During the year ended 31 March 2024, the Company has not considered Share warrants of 50,000 which are convertible into equity shares
being anti-dilutive. During the year ended 31 March 2025 the Company has forfeited 50,000 Share Warrants.

The basic and diluted earnings per share for the current year and previous year presented have been calculated after considering the share split
during the year ended 31 March 2025. Accordingly, adjustments have been made for options granted to employees under the ESOP scheme of
the Company. (Refer Note 47)

36. Fair value measurements

Risk management framework:

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s Board of Directors oversees the management of
these risks. The Company''s Board of Directors is supported by the senior management that advises on financial risks and the appropriate
financial risk governance framework for the Company. The senior management provides assurance to the Company''s Board of Directors
that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company''s policies and risk objectives.

(iii) Transfer between Level 1 and 2

There have been no transfers from Level 2 to Level 1 or vice-versa in FY 2024-25 and no transfers in either direction in FY 2023-24.

37. Financial instruments risk management

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, lease liabilities, deposits, trade receivables and other financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024. The analyses exclude
the impact of movements in market variables on the carrying values of gratuity and other post retirement obligations; provisions; and
non-financial assets and liabilities.

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 has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest
rates. The management monitors the interest rate movement and manages the interest rate risk based on its policies, which include
entering into interest rate swaps as considered necessary. The Company''s investment in deposits with banks are for short durations
and therefore do not expose the Company to significant interest rate risk.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the
reporting period was outstanding for the whole year. A 10 basis points increase or decrease in case of foreign currency borrowings
and 50 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key
management personnel and represents management''s assessment of the reasonably possible change in interest rate.

If interest rate had been 10 basis points higher/lower in case of foreign currency borrowings and 50 basis points higher/ lower in
case of rupee borrowings and all other variables were held constant, the Company''s profit for the year ended 31 March 2025 would
decrease/increase by '' 5.82 (31 March 2024: '' 33.85).”

ii. Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure shall fluctuate because of change in foreign
exchange rates. The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses,
(primarily in US Dollars and Euros) and foreign currency borrowings (primarily in US Dollars). As a result, if the value of the Indian
rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may
decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed
substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both
derivative and non-derivative financial instruments, such as foreign exchange forward contracts, currency swap contracts and foreign
currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable
forecasted transactions and recognised assets and liabilities.

The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted
transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in
other comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of the
forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the statement of profit and loss.

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 other financial instruments.

The Company has established a credit mechanism under which each new customer is analysed individually for creditworthiness before
the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, where
available, and other publicly available financial information. Outstanding customer receivables are regularly monitored.

The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to '' 3528.78 (31 March 2024:

'' 2,587.94). (refer note 14)

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains
flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected
cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity
management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these,
monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company''s principal sources of liquidity are the cash flows generated from operations. Further the Company also has long term
borrowings and working capital facilities which the management believes are sufficient for its current requirements. Accordingly, no liquidity
risk is perceived.

38. Capital risk management

The Company''s objective when managing capital is to safeguard the Company’s ability to continue as a going concern in order to provide
returns for shareholders and benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Hence, the
Company may adjust any dividend payments, return capital to shareholders or issue new shares or sell assets to reduce debt. Total capital
is the equity as shown in the statement of financial position. Currently, the Company primarily monitors its capital structure on the basis
of the following gearing ratio. Management is continuously reviewing its strategies to optimize the returns and reduce the risks. It includes
plans to optimize the financial leverage of the Company.

(c) Notes on Contingent liabilities

(i) The Company has received an Order from the Commissioner (Appeals), Hyderabad for a demand of ''7.25 for the period
November 2007 to March 2012 on the ground that the Company has not complied with the conditions of Notification No 23/2003
- CE dated 31 March 2003. As per the said notification, an Export Oriented Unit (EOU) unit can clear the goods into Domestic Tariff
Area (DTA) on payment of excise duty at a concessional rate upto 50% of the Free on Board (FOB) value of the exports on the sale of
similar goods to DTA. The Central Excise authorities have held that the goods sold in DTA are different from that of the goods which
are exported and accordingly, demand has been raised along with interest and penalty. The Company has filed an appeal before the
Central Excise and Service Tax Appellate Tribunal (‘CESTAT'') and waiting for personal hearing.

(ii) The Company has received an Order from the Commissioner (Appeals), Central Excise, Pune for a demand of '' 12.36 for the period
July 2012 to December 2014 on the ground that the Place of Provision of Service is in India and as such there is no export of service
by the Company applying Rule 4 of Place of Provision of Service Rules, 2012 (POPS Rules) with respect to Drug Metabolism and
Pharmacokinetic (DMPK) services rendered by the Company. The Company has filed an appeal before the CESTAT Pune on 27
April 2015 which is rejected. Thereafter, the Company has filed an appeal before the Honourable High Court on 09 December 2019
and Personal Hearing is attended on 27 February 2020. Appeal has been admitted by High court on 05 July 2022 and waiting for
personal hearing.

(iii) The Company had three Non resident Indians on its rolls covered under the definition of International Workers as per the Employees''
Provident Funds and Miscellaneous Provisions Act, 1952. Based on the Government Order, in June 2017, the Company suo moto
made a payment of provident fund along with the applicable interest rates.

However, on 25 April 2018, the Company received a notice from the Department stating that from the period 01 April 1996 to 31
March 2018, the Company had delays in deposit of Provident fund amount and accordingly, charged interest and damages under
Section 14B and Section 7Q of the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 to the extent of ''13.15 and
''21.89 for interest and damages respectively.

The Company has represented the case stating that interest payments were made appropriately. The PF authorities took such
interest payment on record and gave a corrigendum stating the same.

The Company is still contesting the damages payment of '' 21.89. The Company addressed a letter dated 22 October 2020 to
the Regional Provident Fund Commissioner, requesting it to refrain from taking any such coercive action against the Company
and reserved its right to exercise its rights and remedies under law. However, since no presiding officer had been appointed for
hearing matters before the Central Government Industrial Tribunal (“CGIT”) at that time, the Company filed the present writ petition
bearing Writ Petition No. 19867 of 2020 against the RPFC for the setting aside of the Impugned Order as being arbitrary, illegal and
violative of Article 14 of the Constitution of India. The matter was listed on 19 November 2020, wherein, the High Court passed an
interim order granting a stay on the Impugned Order. However, as on date, there is no further order with regard to the said damages.
Apart from the proceedings before the High Court of Telangana, an appeal was also filed by the Company challenging the Impugned
Order before the CGIT under Section 7-I of the EPF Act. The matter was listed for admission on 26 April 2021. The CGIT, vide,
an order passed on 26 April 2021, observed that the present appeal was admitted subject to the final order passed by the High
Court of Telangana. The said order held that the application for stay as filed by the Company would be considered upon obtaining
such a final order.

(iv) The Company has received an Order dated 25 March 2025 from the Income tax authorities relating to assessment year 2019-20
for an amount of '' 8.74, treating the Company as ‘Assessee in default'' due to non-deduction of TDS on remittances made to certain
vendor outside of India. The Company is in process of filing an appeal before the CIT (A).

(v) The Company has received an Order from the Assessment Unit, Income Tax Department for a demand of '' 18.27 for the assessment
year 2022-23 disallowing the ‘Repairs and Maintenance'' expenditure as revenue expenditure but allowed Depreciation @ 15% on
such expenditure by treating it as ‘capital expenditure''. The Company has filed an appeal before the Commissioner of Income Tax
(Appeals) and waiting for personal hearing.

(vi) The Company has received an Order from the Deputy Commissioner of State Tax, Pune for a demand of ''4.22 for the period

July 2017 on the ground that the transitional input tax credit carried forward into GST by the Company is incorrect and accordingly,
demand has been raised along with interest and penalty. The Company has filed an appeal before the Deputy Commissioner of State
Tax (Appeals), Pune and waiting for personal hearing.

(vii) The Company has received Orders from the Deputy Commissioner of Commercial Taxes (Enforcement), Kalaburagi for a demand
of '' 366.84 for the period July 2017 to March 2022 on the ground that ‘Marketing support'' services received from M/s. Sai Life
Sciences Inc., USA are liable to GST under Reverse Charge mechanism. The Company has filed an appeal before the Joint
Commissioner of Commercial Taxes (Appeals), Gulbarga for all the financial years and waiting for personal hearing.

(viii) The Company has received an order from the Joint Commissioner, Malkajgiri Division, Telangana for the financial year 2018-19
disallowing the input tax credit from cancelled tax payers for an amount of ''4.97 including interest and penalties. The Company has
filed an appeal before the Joint Commissioner of State Tax (Appeals), Telangana and waiting for personal hearing.

The Company has received an order from the Joint Commissioner, Malkajgiri Division, Telangana for the financial year 2019-20
disallowing the input tax credit from cancelled tax payers for an amount of ''0.43 including interest and penalties. The Company has
filed an appeal before the Joint Commissioner of State Tax (Appeals), Telangana and waiting for personal hearing.

(ix) The Company has received an order from the Deputy Commissioner, Kalaburagi, Karnataka for the financial year 2019-20
disallowing the input tax credit on invoices not appearing in Form GSTR-2A for an amount of ''2.89 including interest and penalties.
The Company has filed an appeal the Joint Commissioner of Commercial Taxes (Appeals), Gulbarga and waiting for personal hearing.

The Company has received an order from the Deputy Commissioner, Kalaburagi, Karnataka for the financial year 2020-21 disallowing
the input tax credit on invoices not appearing in Form GSTR-2A for an amount of '' 87.88 including interest and penalties.

The Company is in process of filing an appeal before the Appellate Authority.

The Company has received an order from the Joint Commissioner, Malkajgiri Division, Telangana for the financial year 2020-21
disallowing the input tax credit on invoices not appearing in Form GSTR-2A for an amount of ''0.58 including interest and penalties.
The Company is in process of filing an appeal before the Appellate Authority.

(x) The Company has received Orders under Maharashtra Value Added Tax (‘MVAT'') Act, 2002 and Central Sales Tax (CST'') Act, 1956
from the Joint Commissioner of State Tax, Pune for a demand of '' 44.73 for the period April 2009 to March 2014 regarding the
eligibility of refund of Input Tax Credit (‘ITC) under MVAT Act. The tax authorities have raised objection that transfer of deliverables
(technical know-how) to the Customer of the Company is a service and not sale of goods. However, the Company believes that
transfer of deliverables to the Customer is sale of goods and the Company is eligible for refund of unutilized ITC. Accordingly, the
Company has filed an appeal before the Maharashtra Sales Tax Tribunal (MSTT) and waiting for personal hearing.

(xi) The Company has received an Order from the Assistant Commissioner of Customs, Mumbai for a demand of ''0.06 for the period
January 2019 to August 2019 regarding short discharge of customs duties owing to wrong classification of goods. The Company
has filed a reply clarifying the error in the Order and further, filed an appeal before the Commissioner of Customs (Appeals), Mumbai.
The Company is waiting for personal hearing.

(xii) The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business including
litigation pending before various tax authorities, including those mentioned in above points. The uncertainties and possible refunds
are dependent on the outcome of different legal processes, which have been invoked by the claimants or the Company, as the case
may be, and therefore cannot be accurately predicted . The Company engages reputed professional advisors to protect its interest
and has been advised that it has strong legal positions against such disputes. Management believes that it has a reasonable case in
its defence of the proceedings and accordingly no impact has been considered in the financial statements.

42. Other statutory disclosures

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

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

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

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

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

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

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

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

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

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

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

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

46. The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post employment benefits received
Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will
come in to effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any
related impact in the period the Code becomes effective.

47. The Board of directors recommended following in its meeting held as on 10 June 2024. :

(i) To split each equity share of face value of '' 10 into 10 equity shares of face value of ''1 each. Accordingly, the issued, subscribed,
and paid-up capital of our Company was subdivided from 1,76,63,034 equity shares of face value of '' 10 each to 17,66,30,340
equity shares of face value of '' 1each. The impact of split share is retrospectively considered in the computation of EPS as per the
requirement of Ind AS - 33 Earnings per share.

(ii) Increase in authorized share capital from ''214 consisting of 2,14,00,000 Equity Shares of '' 10/- each to '' 250 consisting of
25,00,00,000 Equity Shares of ''1 each

The shareholders of the Company approved above recommendation in its Extra Ordinarily General Meeting, dated 11 June 2024.

48. During the year ended 31 March 2025, the Company has completed its Initial Public Offer of equity shares of face value of '' 1 each
at a issue price of '' 549 per share (including premium of '' 548 per share) comprising of Offer for Sale of 3,81,16,934 equity shares
by selling share holders aggregating to '' 20,962.19 million and fresh issue of 1,73,04,189 equity shares aggregating to '' 9,500.00
million. The equity shares of the Company got listed on National Stock Exchange of India limited and Bombay Stock Exchange on

18 December 2024.

The total offer expenses are estimated to be '' 1,284.81 million (inclusive of taxes) which are proportionately allocated between the selling
shareholders and the Company in the ratio of equity shares sold by the selling shareholders and issued by the Company. The utilisation of
IPO proceeds of '' 9,098.84 million (net of provisional IPO expenses of '' 401.16 million) is summarized below:

* Net proceeds which were unutilised as at 31 March 2025 are temporarily invested in deposits with a scheduled commercial bank.

49. The previous year''s figures have been re-grouped/reclassified where necessary to confirm current year''s classification

50. Approval of financial statements

The Standalone financial statements were approved by the Board of Directors on 13 May 2025.

For and on behalf of the Board of Directors of
Sai Life Sciences Limited

CIN No: U24110TG1999PLC030970

K.Ranga Raju Krishnam Raju

Chairman Managing Director

DIN No: 00043186 DIN No: 00064614

Sivaramakrishnan Chittor Runa Karan

Director & Chief Financial Officer Company Secretary

DIN No: 01092158 Membership No.: A13721

Place: Hyderabad
Date: 13 May 2025

---

Mar 31, 2024

V. Righrs, preferences and restrictions attached to equity shares

dividend as declared from time to time. SSTlf ^''''ckT* ^a”^{d StareCompany}''^{s res}‘^d"¹ “Sets, The equity shares are entitled to receive

cannot be exercised in respect of shares on which anvcal, or oiheTshtns“h F^r“ ‘n ^,he ^ «*»'' * «* Company. Noting rights

of the Company, the Ufa. of equity states wi« be entided to receive the r« dial ^eL IV “T rT ™'' “ * *N V

held. ^a“ company, lemaming alto distribution of all preferential amounts in proponion to the number of equity stares

vi. Rights, preferences and restrictions attached to preference shares

The Company has two classes of preference shares viz, Compulsorilv convertible preference shared CCPRi mi„ , , _ . „

stares are partly paid to the tune of ?. 8.06 per stare and the same will be treated as 6dlv paid-up upon 4.80 million). The said

converted into 1 fully paid up equity share of?. 10 each upon pavment of uncalled portion of die said shares of ? I 04Tih to. ?. I H per share as and when made. Each CCPS andOCPS will be

declared from time to time on a non-cumulative basis. ®CPS wi„ta convent tao^u^stai^^ltaComtam ^on^t^Coinpain''meediiglheKTO^^rtbvmam.’e''raikslons^{10 rCCe}''^{Ve <}^^v’^^er,<* ^:d

vii. Warrants convertible into equity shares

s.-jrsc,ra!^^ ---

Intenm d,v .dend of Rs. 34... ......on. (Rs. 30.fi., per prefeience share) was paid for the financial year ended March 31.2023. based on the approval of the Boaldof Directors in their meeting held on

lloO

W Jr \

Si- Shares reserved for issue under options

(a) Employee slock option plan - 2004 <^MESOP 2M4" I

²7? "^IldCr "I"''" ''T^Mr> T* *''*** ^?1 ° “^{eh WCrC Canreukcd and a}PP^{rovcd b}> »''^c Shareholders at the Extraordinary General Meeting Held on 1 - September

2i«M. These opiums shall vest at U ears Irom the gram date The vested options can be exercised by the employee daring his term or employment with the Company.

Employee stock option plan - 2IM6 [*’ ESOP 20(16")

^{a p,a}" ^Eli^SOP;⁰⁰7^{ndCr Wl,i};^{h ,50}-"°" ****^s,13rcs °^r * »’^{cach wcrc} cannarked mid approved by the Sharclmltfcrs at the Annual General Medina held on It, Aumist 2006 f,0»„ of

IT ! ^a . ^C,MJ ° ‘^{hrcc ?cars frani thB sr!,nl dalc aBd 4(,}“° °^{r lhc} °P"^alls panted shall vest at Ute end or five years from the grant dale. The vested options can be exercised bv the

employee during his term ot employment with live Company. ^H - ^Ulc

Sai Employee stock option scheme - 2(1 UK ("SESOS 2tMIS")

The Company established a plan SESOS approved by the Shareholders at the Annul and Extraordinary General Meetings held on 11 September 20<1S and 30 March 2000 respectively As per the scheme

UndcMl ‘ ^K °^{P ,S} '' J ^C yetUS fr°^m “* =^ran''^dalC-^{Thc vcslcd} °P^lkms =“ ^{be b}v «bc employee during his lent, of cmplovmcm with the Company

Under litis sJtcnie. the eompanv granted additional employee slock options approved bv thc Shareholders al the Extraordinary General Meeting held on 25 Jnlv 20IS Thc options granted shall v esi •>(>«;,-a ,|_K

endot even yearfronuhe grant dale for a period of 5 years. The vested options can be exercised by the employ cc during his term of employ mum with the Company.

Management ESOP scheme -2018 ("MES 2IHJTI

The Company established a plan MES 2018 approved by the Shareltoldcrs at the Extraordinary General Mcclit.g held on 25 July 2018. As per the scheme mux.muin number of shares rescrv cd under this scheme *i “ ^Pa''^{d WP}T^{,a> C!,P}''*^{a of,}be Company on a lull, diluted btts.s asoit the Effective Date. The options granted sltall vest 10«.m thc end of ev ctv year front thc gram date fora penod or5 vears The \ cat-d options can be exercised by tlie employee dun ng lus term of employ mail»ith the Company. " ^P ''

The Company amended lire plan MES 2018 and ESOP 2»»8 nppiov cd by the Shareholders al the Extraordinary General Meeting held on 25 March 2CI22 and 9 June 2(123

The terms o^hc above schemes P«>v idc that each opt.on entitles the holder to one equity share or? 10 each and that the options can be settled only bv wav oftssue of equity shares The options grained arc entirely time-based lor EbOP 2004. ESOP 2006, SESOS 2i)OB MES 21)18 and Amended MES 2018 is time and performance based '' '' '' ne options grantee arc

(h) Duiing the year ended M March 2024. the Company had inclined stock compensation cost of?22 54 (31 March 2023; ?8 I4> towatds (lie ibovcscliemes.

. - v.’jj i.4n X‘M7 22

Nalurt and pur|pusc p»f resen es '''' ¹ " —

(a) Securities premium

^"™_c‘t^^{cd in CSCCSS} °^rfi“ ^{valuc of the} «¦““>^{sharoi is} ^«Smsed in Securities Premium. During the yettr ended 51 March 2i»24 and ? I March 2025. _lJlc Company issued 40,478 and (a,.250 equity

Capital reserve peratins to the excess of net assets taken, over thc cost of consideration paid pursuant to amalgamation of Advamituit Pharma Private Limited with the Company in the earlier vears and on forfeiture of certain share warrants issued in the carlicrycars. The Company uses capital rescu e for transactions in accordance vv.lh thc provisions of the Act. *

(c) Employee stock options outstanding account

“ "*** “¦*“ ¦*“•* •"** "> *> ^c”« »^ib «**»« -to¹¹⁵1*!— «*• plan. That-ill bp mmt* » E«% Mi S««- p— A,

id) Retained cannings

Retained earnings are Hie profits that the Company lias ettnted till date, less any transfers to general rescry c. div tdends or other distributions paid to shareltoldcrs. tc) C ash flow hedge reserve

Lash (low hedge rescry c represents eflcctn c poition of cash flow hedges taken to Other comprelicnsiy c income

Terms and conditions

(i) Term loan amounting to? 894 99 (3 I March 202''* 7994 tons secured b> wav of pirn passu first charge ou oil property plant and equipment including other intangible assets both present and future including equitable mortgage of the properties of Line Company and pari passu second el large on all ltd eurrcnl asscls brill) present and future ol the Company. I liis loan entries interest rate of <» months MCLIl mi.55% and is repayable in unequal quarterly instalment commencing Imm June 2024 with Iasi insinhneiil falling due in March 2<»0

nit Common Co\id Emergency Credit Line (CCECL) amounting to 7 93.69 (31 March 2023: 7 I4U.o7) is secured by way of pan passu second cl targe on all property, plant and equipment including oilier intangible assets both present and future including equitable mortgage of Ihc properties of the Company and part passu second charge on till current assets both present and future of the Company. This loan carries interest rate equal to h months MCLR per annum f I % with monthly rests and was repot able in equal Montlih instalments commencing from April 2022 and the lost repayment falling due in April 2020

iin I Term loan amounting to 7 Nil (31 March 202? 7 9“ 28) is secured by way of pan passit first charge on all property, plant and equipment including other intangible assets both presem and future including equitable mortgage of tlte properties of Lite Company and pan passu second charge on all current assets both present and future of the Company Tliis loan carries interest rate or l vear MCLR 275 % Spread per onmium and is repayable in unequal quarterly instalment commencing from September 20 P with last instalment falling due in March 2024.

(ivi Tenn loans (USD denominated! amounting to 7 ! 8.6” (31 March 2023- 73 ti 531 is secured by way of pari passu first cliargc on all property, plant and equipment including other intangible assets both present and future including equitable mortgage of the properties of the Compairy and pari passu second cliargc oil all current assets both present and future of the Company These loans carry interest rale of Secured overnight financing rate (SOFRy (compounded) * 2"^ bps (nun-compounded) p.a . on the outstanding USD notional, monthly and are repay able in unequal quarterly instalments commencing from Juiy 21! P with tire last instalment falling due ill March 202''''

(\) Term loan amounting to 7 8 55 (.3! March 2ti>3 7 1708) is secured by way of pan passu first cliaige an all property, plant and equipment including oilier intangible assets both present and future including equitable mortgage of the properties of the Company and pari passu second charge on all current assets both present and future ol" the Company. Tliis loan earned interest rate of MCLR OD 1 Year II !5% per annum and was repayable in unequal quarterly instalments commencing from December 2012 and the last repayment falling due in March 2025

(vii Term loan amounting to 7 562.50 (31 March 2023. 7(>3" 501 is secured by way of pari passu firs( charge on all property, plant and equipment including oilier intangible assets both present and fuluic including equitable mortgage of the properties or Ihc Company and pari passu second cliargc on all eurrcnl assets both present and Hume of the Company This loan carries interest rale of “.5% Financial Benchmarks India Private Limited. (FBIL) Overnight Mumbai Imctbaiik Outright Rate (O/N MIBOR.) I not compounded) 305 bps (not compounded) on the outstanding INR Notional ..imuuiiL monthly and was repay able in unequal quarterly instalments commencing from Maich 2022 and the lost repayment falling due in December 2028

ivnt Tenn loan ''USD denominated) amounting to 7 Nil (31 March 2112.3 7 52,19) is secured by way of pari passu first cliargc on all properly, plant and equipment including other intangible assets both presem and future including equitable mortgage of 11k properties of lire Company and paii passu second charge on nil current assets both present and future of the Company This loan earned interest rale of USD3M LIBOR 3.25% p.a and is repayable in quarterly insiahncnls commencing Trom November 2019 with the last instalment falling in August 2023

tviin Tenn loan amounting lo 7 615.13 (31 March 2022: ? 70782) is secured by way of pari passu first choige on all property, plant and equipment including other intangible assets both present and future including equitable mortgage of the properties of the Company and pan passu second cliargc on all current asscls both present and future of the Company , This loan carried interest rate of 3 Months MCLR 0.15% per annum and was repayable in unequal qumtcily instalments commencing ftoniNoi ember 2(122 and the last repay mem falling due in AngusL 2027

tfcO Tenn loan lo 7 281.25 (31 March 2023; 7 393.75) is secured byway of pari passu first charge on all property, plant and equipment including other iniangible assets both present and future including equitable mortgage of the properties of the Company and pari passu second cliargc on all current assets both present and future of lire Company This loan carried I year MCLR Spread of 1.05% p.a and was repayable in unequal quarterly instalments commencing front July 2021 and llic Iasi repayment falling due in April 2026

(\i Working capital Tenn loan facility under Guaranteed Emergency Credit Line amounting to 7 60.99 _t V) March 2023 7 101.94) is secured by way of pan passu second charge oil all property, plain and equipment including ulhei intangible assets both present and future including equitable mortgage of (lie properties of the Company and pari passu second charge on all current assets belli present and future of ihc Company This loan carries interest rate of 3m T-feill Rare 3.6% Spread p.a and was repayable in equal Monthly instalments commencing from March 2ij2 I and the last repayment falling due in March 2026

ini i Working capital Term loan facility under Guaranteed Emergency Credit Line amounting to 7 (P 62 131 March 2023; 793.231 is secured by way of pari passu First Cluirge on all property. plain and equipment including oilier intangible assets both present and future including equitable mortgage of Ihc properties of the Company and pari passu second charge on all current assets both present and future of the Company, This loan entries interest rate of IY MCLR O 15% which ever is lower and was repayable in equal Monthly instalments commencing from \pri1 2022 and the last repayment falling due in March

2026.

(Niii Term lam amounting to 7 499 50 is secured hy way of pnn passu first cliargc on nil properly plant and equipment including other intangible assets both present and future including equitable mortgage of Ihc properties ol the Company and pan passu second charge on all ciurent assets both present and future of the Company. Tins loan earned 3m l -hill Hale • l 40% spread and was repayable in equal quarterly instalments commencing from Sept 2025 and the last repayment falling due m June 2030 ¹

assummio,^ ^rate ^ ^ ^K=a,alio11 ra«- ^T''« ««™hli™ of ¦* nd defined benefit liability ,s sensitive .0 these

**,,***«, 3.7»_w,i„_WKtam.„i_>._aB)--^---itbLi

basis the actuarial valuation of the present value of the obligation, using die Projected Un.i Credit Method. '' ^{} 11}*’^{1 <,n,pr}"" ^dclCTrnlncs •<* «!*=«« ^f«^r iompcns.red absences

rassisr¹"

37. Financial instruments risk management

A. Market risk:

—¦¦———¦—

_a„d ..on-t.n.w.ci.. a_SSe_{K and} ,_iabilMi_es ^ -⁰''³ "''^C “•** .......— v«™b,e_So„ I.,c eanyi,,,. values o._Sra.„i,_y »„_{d posl} ,_direlnenl ^

i. Interest rate risk: ^fc ''

Interest rate sensitivity analysis

^^ ^P°^in,S^“⁼ ^ ,^{V 10 ta}‘“ H»« -decrease in caseof_forei_B„ curteacy

If interest rate had been 10 basis points hiither lower in case „f ¦ " tent pusonnel and represent!! management''s assessment of tile reasonably possible change in interest rate

would deciease/increase by f33.U5 131 March 2023. ?31.9*|J. ^0re,®ⁿ nnrreiicy borrowings and 5(1 basis points higher/ lower in ease of rupee borrowings and all other variables were held constant, the Company''s profit lot the year ended 31 March 2034 ii. Foreign currency risk:

''r“V? ¦»—»-»j—. «*..™.,

reXf ETIX* fu^^ SS “^ChanB''

B. Credit risk

liiianciiig aoUvines, include deposkslim banks a,.dI^r''''''''''''''^¹¹¹ ''^nS,r"^raem “ ^CUS''°^mer “^,Ur*^{!t leadi}"⁸ 10 ,inand«^l **• H"««» risk arises principally from its operating activities (primarily trade receivables) and from _its externa! ratings, where available, and other publicly avatbl''ntn''eial’ info™^ standard paynten, and deliver terms and eundibons are oiTcred. The Company''s review meludes 37 financial instruments risk management (continued)

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the avaihbili* tin ,l . ompany maintains flexibility'' in binding by maintaining availability under committed facilities * '' ^g "°^U& “ ^Mkl''"^a{c anioullt emitted credit tacililies to meet obligations when due. Due to the nature of the business the

Accordingly, no liquidity risk is perceived.^ ^ ^ ^ ^ ^a,S° ^has ^ ^{term b}™''*^{s and} facilities which the management believes are sufficient for its current requirements.

39. Related party disclosures {continued)

*KMP are covered by the Compares medi claim insurance policy and are eligible for gratuity and leave encashment along with other employees of the Company The proportionate premium paid towards this policy and provision made for gratuity and leave encashment pertaining to the KMP has not been included in the aforementioned disclosures as these are not determined on an individual basis

Share based compensation expense allocable to key management personnel is ? 0 45 (31 March 2023 : ? 2.37), which is not included in the remuneration disclosed above.

(d) Transaction with related parties

In accordance with the applicable provisions of the Income Tax Act, 1%|, the Company is required to use certain specified methods in assessing that the transactions with the related parties, are carried at ail aim’s length price and is also required to maintain prescribed information and documents to support such assessment The appropriate method to be adopted will depend on the nature of transactions / class of transactions, class of associated persons, functions performed and other factors as prescribed Based on certain internal analysis carried out, management believes that transactions entered into with the related parties were earned out at arms length prices. The Company is in the process of updating the transfer pricing documentation for the financial year ended 31 March 2024 In opinion of the management, the same would nut have an impact on these financial statements.

•10. Segment repurling

The management has assessed the identification of reportable segments in accordance with the requirements of Ind AS 108 ''Operating Segment and believes that the Company has only one reportable segment namely “Contract research and manufacturing” Geography-wise details of the Company''s revenues from external customers and its non-current assets tother than financial instruments, investments accounted for using the equity method, deferred tax assets and post-employment benefit assets) and revenue train major customers are given below:

{c) (i) The Central Excise department has raised a demand against the Companv on the ground that the Company has not complied with the conditions of Notification \o 23 2003 - CE dated 31 March 2003 As per the said notification, an Fxport Oriented Unit {FOTT) unit can clear the goods info Domestic Tariff Area (DTA) on payment of excise duty at a concessional rate upto 50° «> of the Free on Board (FOB) value of the exports on the sale of similar goods to DTA The central excise officer has held that the goods sold in DTA are different Iroiu the goods which are exported. Accordingly raised the above demand along with interest and penally Appeal is tiled before Central Excise and Service Tax Appellate Tribunal {CESTAT) and waiting for personal hearing

(ii) The Service tax department has raised a demand nn the ground that that the Place of Provision of Service is in India and as such there is no export of service by the Company applying Rule 4 of Place of Provision of Service Rules, 2012. (POPS Rules) with respect to Drug Metabolism and Pharmacokinetic (DMPK) services rendeied by the Companv. Appeal filed before CESTAT- Pune, on 27 April 15 and Final Order received. Appeal is tiled before Honourable High Court on 9 Dec I 9 and Personal Hearing is attended on 27 Feb 20. Appeal has been admitted by Hight court on 5th July 2022

{iii) The Company had three Non resident Indians on its rolls covered under the definition of International Workers as per the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Based on the Government Order, in June 2017. the Company suo moto made a payment of provident fund along with the applicable interest rates However, on April 25, 2018. the Company received a notice from the Department stating that from the period 01 April 1996 to 31 March 2018, the Company had delays in deposit of Provident fund amount and accordingly. charged interest and damages under Section 14B and Section 70 of the Employees’ Provident Funds and Miscellaneous Provisions Act. 1932 to the extent of?. 13.15 and ?.21.89 for interest and damages respectively

The Company has represented the ease stating that interest payments were made appropriately The PF authorities took the such interest payment on record and gave a corrigendum staling the same

''Hie Company is still contesting the damages payment of ? 21.89. I he Company addressed a letter dated October 22. 2020 to the Regional Provident Fund Commissioner, requesti ng it to refrain from taking any such coercive action against the Company and reserved its right to exercise its rights and remedies under law However, since no presiding officer had been appointed for hearing matters before the Central Government Industrial Tribunal (“CGIT") at that time, the Company filed the present writ petition bearing Writ Petition No. 19867 of 2020 against the RPKC for the setting aside of the Impugned Order as being arbitrary, illegal and violative of Article 14 of the Constitution of India. The matter was listed on November 19. 2020, wherein, the High Court passed an interim order granting a stay on the Impugned Order However, as on date, there is no further order with regard to the said damages Apart from the proceedings before the High Court of Telangana, an appeal was also filed by the Company challenging the Impugned Order before the CGIT under Section 7-1 of the EPF Act. The matter was listed for admission on April 26. 2021. The CGIT. vide, an order passed on April 26, 2021, observed that the present appeal was admitted subject to the final order passed by the High Court of Telangana The said order held that the application for stay as filed by the Client would be considered upon obtaining such a final order

li\) During the previous years the Company has received a demand from income tax authorities relating to financial year 2015-1 fa, 2016-17 & 2017-1S regarding certain disallowances in the income tax return of that year. The Company has filed an appeal and is pending hearing. In the current year, the Company has received favorable order for the financial year 2015-16 and 2017-18. ’

41. Contingent liabilities and commitments (continued)

(v) The Company has litigations under Maharashtra Value Added Tax (MV ATT Act. 2002 and Central Sales Tax (''CST'') Act. 19*6 tor the years 2009-10 to 2016-17, and for the quarter I April 2017 to 30 June 2017 For the years 2009-10 tc 2013-14. the Company is in appeal before the Maharashtra Sales Tax Tribunal and for the years 2014-15 to 30 June 2017, the Company is in appeal before the Joint Commissioner (Appeals) The issue pertains to eligibility of refund of Input Tax Credit (TTC) under MV AT Act.

The tax authorities have raised objection that transfer of deliverables (technical know-how! to the Customer of the Company is a seivice and not sale of goods Therefore, the tax authorities at the first level have disallowed TTC and rejected the claim of refund of unutilised TTC of the Company. However, in this regard, the Company believes that transfer of deliverables to the Customer is sale of goods and the Company is eligible for TTC and the refund of unutilized ITC.

(vt) The Company has leceived older fioni the officer where he has disallowed the transitional ITC and levied inteiest and penally total amounting to f 4 22. Appeal is filed before Deputy Commissioner of State Tax. Office of the Deputy Commissioner of State Tax, Pune in the year ending March 2023 The Company is waiting for personal hearing.

(vii) During the current year, the Company has received order from the GST Enforcement Authorities, Gulbarga having jurisdiction over Bidar unit of the Company demanding tax along with interest and penalties on ''Marketing support’ services received from M s Sai Life Sciences Inc, USA for the financial years 2017-18 and 2018-19. Total amount involved along with interest and penalty is ? 73.09. The Company has filed an appeal before Commissioner (GST Appeals), Gulbarga for the financial year 2017-18 and waiting for personal hearing With regards to financial year 2018-19, the Company is in process of tiling appeal before Commissioner (GST Appeals) Guibarga

(vii i) The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business including litigation pending before various tax authorities, including those mentioned in above points. The uncertainties and possible refunds are dependent on the outcome of different legal processes, which have been invoked by the claimants or the Company, as the case may be. and therefore cannot be accurately predicted . The Company engages reputed professional advisors to protect its interest and lias been advised that it has strong legal positions against such disputes. Management believes that it has a reasonable case in its defense of the pioceedi ngs and accordingly no further provision is required

(ix) Subsequent to the closure of book of accounts for the year ending March 2024. the Company has received Order dated 30 April 2024 for Lax demand of ? 4 5 regarding the audit ofTelangana GST registration for the financial year 2018-19. The Company is in process of evaluating the grounds for tiling an appeal before the appellate authorities, ix) The Company has received a demand notice dated 23 March 2024 relating to Assessment Year 2022-23 from the Commissioner of Income Tax (Appeals) for ? 18.27 The Company has filed an appeal and is pending for hearing

42. Other statutory disclosures

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

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

iii) The Company does not have any charges or satisfaction which isyet to be registered with ROC beyond the statutory- period

iv) The Company has not traded or invested in Cry-pto currency or Virtual Currency during the financial year

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

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

la) directly or indirectly lend or invest in other persons or entities identified in any maimer whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (h) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

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

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

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

43. Micro, Small and Medium Enterprises

Disclosure in respect of die amounts payable to micro and small enterprises as at 31 March 2024 & 31 March 2023 lias been made in the financial statements based on information received and available with the Company The Company has not received any claim for interest from any supplierunder the said Act

44 Leases

Company as a lessee : The Company has lease contracts for laml. buildings, plant and equipment, vehicles and computers, with

ease period varymg between I to 51 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets.

Note: The Company applies the short-term lease recognition exemption to its short-term leases of certain premises taken on lease ^{, e}" ^{Ul0Se eases that have a lease tel m of 12 montlls or less fron}>^tlle commencement date and do not contain a purchase option).

46 The Code on Social Security, 2020 (‘Code'') relating to employee benefits during employment and post employ ment benefits received Presidential assent in September 2020 The Code lias been published in the Gazette of India. However, the date on which the Code will come in to effect lias not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

47 With effect from I April 2023 the Ministry of Corporate Affairs (MCA) has made it mandatory for companies to maintain an audit trail throughout the year for transactions impacting books of accounts.

The Company uses accounting software for maintaining the books of account which has a feature of recording audit trail and has defined process to enable audit trail of books of accounts The C ompany for the financial year ended 31 March 2024 has enabled the feature of recording audit trail (edit log) facility except for the following

- in respect of accounting software, audit trail feature was not enabled for the period 0! April 2023 to 30 March 2024 post which audit trail feature was enabled at the application level.

- in respect of a accounting software operated by a third party software service provider for maintaining payroll records, independent auditor''s system and organisation controls report docs net cover audit trail related reporting for the period from 01 January 2024 to 31 March 2024

48 The previous year''s figures have been re-grouppedreclassified where necessary (o confirm current year''s classification

1

mii) Toiiii loan amounting to 7 249 “0 is teemed by way of pari pass it first cliargc on all property, plant and equipment including ollici intangible assets both present and future including equitable mortgage of the properties of the Company and pari passu second charge on all current assets both present and future of the Company. Tliis loan carried Repo Spread of 1.85% p.a and was repayable in equal quarterly instalments commencing from June 2025 mid the last repayment falling due in March 2030