p. Provisions, contingent liabilities and contingent
assets

General

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of a
past event, and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, the expense
relating to a provision is presented in the Statement of
Profit and Loss, net of any reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.

Contingent liabilities and Contingent assets

Contingent liability is a possible obligation arising 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 or a present obligation that arises from past events
but is not recognised because it is not probable that
an outflow of resources embodying economic benefits
will be required to settle the obligation or the amount
of the obligation cannot be measured with sufficient
reliability. The Company does not recognize a contingent
liability but discloses its existence in the consolidated
financial statements.

Contingent asset is not recognised in standalone financial
statements since this may result in the recognition of
income that may never be realised. However, when the
realisation of income is virtually certain, then the related
asset is not a contingent asset and is recognized.

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

Onerous contracts

Provision for onerous contracts. i.e. contracts where the
expected unavoidable cost of meeting the obligations
under the contract exceed the economic benefits
expected to be received under it, are recognised when
it is probable that an outflow of resources embodying
economic benefits will be required to settle a present
obligation as a result of an obligating event based on a
reliable estimate of such obligation.

A provision for onerous contracts is measured at the
present value of the lower of the expected cost of
terminating the contract and the expected net cost of
continuing with the contract, which is determined based
on the incremental costs of fulfilling the obligation under
the contract and an allocation of other costs directly
related to fulfilling the contract. Before a provision is
established, the Company recognises any impairment
loss on the assets associated with that contract

q. Earnings per share

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

r. Cash flow statement

Cash flows are reported using indirect method, whereby
net profits before tax is adjusted for the effects of
transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments and
items of income or expenses associated with investing or
financing cash flows. The cash flows from regular revenue
generating (operating activities), investing and financing
activities of the Company are segregated.

s. Research and development

Expenditure on research activities are expensed as and when
incurred. Development expenses which meet defined criteria
for capitalisation are capitalised if its 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 or loss as incurred.
Subsequent to initial recognition, development expenditure
is measured at cost less accumulated amortisation and
any accumulated impairment losses. Capital expenditure
incurred on research and development is capitalised
as property, plant and equipment and depreciated in
accordance with the depreciation policy of the Company.

t. Investments in subsidiaries

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

u. Events after reporting date

Where events occurring after the balance sheet date
provide evidence of conditions that existed at the end of
the reporting period, the impact of such events is adjusted
within the standalone financial statements. Otherwise,
events after the balance sheet date of material size or
nature are only disclosed.

v. Recent accounting 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 ended March 31, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and amendments
to Ind AS 116 -Leases, relating to sale and lease back
transactions, applicable to the Company w.e.f. April 1,2024.
The Company has reviewed the new pronouncements and
based on its evaluation has determined that it does not have
any significant impact in its financial statements.

4. Use of Judgements and estimates

The preparation of financial statements in conformity
with the Ind AS requires judgements, estimates and

assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial
statements, the reported amounts of revenues and
expenses during the reporting period and the disclosures
relating to contingent liabilities as of the date of the
financial statements. Although these estimates are based
on the management’s best knowledge of current events
and actions, uncertainty about these assumptions and
estimates could result in outcomes different from the
estimates. Difference between actual results and estimates
are recognised in the period in which the results are known
or materialise. Estimates and underlying assumptions are
reviewed on an ongoing basis. Any revision to accounting
estimates is recognised prospectively in the current and
future periods.

Management considers the accounting estimates and
assumptions discussed below to be its critical accounting
estimates and, accordingly, provide an explanation
of each below. The discussion below should also be
read in conjunction with the Company’s disclosure
of Material accounting policies which are provided in
Note 3 to the standalone financial statements, ‘Material
accounting policies’.

Judgments:

Taxes on income:

Significant judgments are involved in determining the
provision for income taxes, including possibility of
utilisation of Minimum Alternate Tax (MAT) credit in
future. Refer Note 30.

Impairment of investments:

Significant judgment is involved in determining the
estimated future cash flows from the investments to
determine their value in use to assess whether there is
any impairment in their carrying amounts as reflected in
the standalone financial statements. Refer Note 8.

Impairment of property, plant and equipment

Significant judgment is involved in determining the
estimated future cash flows from the cash-generating unit
to determine their value in use to assess whether there is
any impairment in their carrying amounts as reflected in
the standalone financial statements. Refer Note 5.

Assumptions and estimation uncertainties:

Recognition of deferred tax assets - The extent to
which deferred tax assets can be recognised is based
on an assessment of the probability of the Company’s

future taxable income against which the deferred tax
assets can be utilised. In addition, significant judgement is
required in assessing the impact of any legal or economic
limits. Refer Note 30.

Evaluation of indicators for impairment of assets: The

evaluation of applicability of indicators of impairment
of assets requires assessment of several external and
internal factors which could result in deterioration of
recoverable amount of the assets.

Useful lives of property, plant and equipment/ intangible
assets: Management reviews its estimate of the useful
lives of property, plant and equipment/ intangible assets
at each reporting date, based on the expected utility of
the assets. Uncertainties in these estimates relate to
technical and economic obsolescence that may change
the utility of certain software, IT equipment and other plant
and equipment. Refer Note 5 and Note 6.

Defined benefit obligation (DBO): Management’s
estimate of the DBO is based on a number of critical
underlying assumptions such as standard rates of
inflation, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions
may significantly impact the DBO amount and the annual
defined benefit expenses. Refer Note 20.

Fair value measurements: Management applies
valuation techniques to determine the fair value of
financial instruments (where active market quotes are
not available) and non-financial assets. This involves
developing estimates and assumptions consistent with
how market participants would price the instrument.
Management uses the best information available.
Estimated fair values may vary from the actual prices that
would be achieved in an arm’s length transaction at the
reporting date. Refer Note 32.

Provisions: The Company exercises judgement in
measuring and recognising provisions and the exposures
to contingent liabilities related to pending litigation or
other outstanding claims subject to negotiated settlement,
mediation, arbitration or government regulation, as well
as other contingent liabilities. Judgement is necessary
in assessing the likelihood that a pending claim will
succeed, or a liability will arise, and to quantify the
possible range of the financial settlement. Because of
the inherent uncertainty in this evaluation process, actual
losses may be different from the originally estimated
provision. Refer Note 20.

(i) Contractual obligations - Refer to note 38(a) for disclosure of contractual commitments for the acquisition of property,
plant and equipment.

(ii) Refer to note 41 for disclosure of leases under Ind AS 116.

(iii) Refer to note 17 for details of assets mortgaged.

(iv) The Company has not revalued any property, plant and equipment after initial recognition, during the current year
and previous year.

(v) Expenditure incurred towards purchase of assets/ equipments for research and development activities amounts to ? 498 (31¬
03-2024: ? 313).

(vi) As required by Ind AS 36, an assessment of impairment of assets has been carried out and based on such assessment and
necessary disclosures are given below:

The Company has identified its reportable segments Pharmaceuticals and Agro Chemicals as separate Cash generating units
('CGUs') for the purpose of impairment testing. Basis the assessment of indicators of impairment, owing to the continous
losses in the Agro chemical segment and reduction in the forcasted revenue and free cashflows, the Company has performed
an assessment of possible impairment in the Property, plant and equipment of the Agro Chemicals segment.

Refer note 17 for details of trade receivables hypothecated against borrowings.

Refer note 36 for details of trade receivables from related parties.

There are no disputed trade receivables as at 31-03-2025 and 31-03-2024.

There are no outstanding trade receivables by directors or other officers of the Company or by firms or private companies in which
director is partner or member as at 31-03-2025 and as at 31-03-2024.

Information about the Company’s exposure to credit risks and market risks and impairment losses for trade receivables is
included in Note 33.

Transfer of trade receivables

The Company sold with recourse trade receivables to banks. These trade receivables have not been derecognised from the balance
sheet, because the Company retains substantially all of the risks and rewards - primarily credit risk. The amount received on
transfer has been recognised as a secured bank loan (see Note 17).

The following information shows the carrying amount of trade receivables at the reporting date that have been transferred but have
not been derecognised and the associated liabilities.

The Buy-back commenced on 21 March 2023 and was concluded on 12 May 2023. In this regard, the Company bought back
3,447,295 equity shares, at an average price of ? 609.1712 per equity share resulting in total cash consideration of ? 2,100
(excluding ? 511 towards transaction cost and tax on Buy-back). These equity shares were extinguished as per the records of
the depositories. Balance expense towards transaction cost and the tax on buy-back amounting to ? 511 was debited directly
to the retained earnings. Further, capital redemption reserve of ? 7 representing the nominal value of shares bought back, was
created in accordance with Section 69 of the Companies Act, 2013.

iv. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of ?2 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividend in Indian Rupees. The final 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 the remaining assets of the Company, after distribution
of all preferential amounts in proportion of their shareholding.

C Nature and purpose of reserves
Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with provisions of
the Companies Act, 2013.

Capital reserve

Capital reserve was created on amalgamation of certain entities into the Company in the earlier years and the transactions with
Shareholders. The Company uses capital reserve for transactions in accordance with the provisions of the Companies Act, 2013.

Capital redemption reserve

The Company had purchased its own shares and as per the provision of the applicable laws, a sum equal to the nominal
value of the shares so purchased is required to be transferred to the capital redemption reserve. The Company uses capital
redemption reserve for transactions in accordance with the provisions of the Companies Act, 2013.

General reserve

The Company generally appropriates a portion of its earnings to the general reserve to be used for contingencies. These
reserves are freely available for use by the Company.

Fair value through Other comprehensive income (FVOCI)

The Company has elected to recognise the change in fair value of certain investments in equity shares in other comprehensive
income. These changes are accumulated within the FVOCI equity instruments reserve within equity. The Company transfers
amounts from this reserve to retained earnings when the relevant equity instruments are derecognised.

Retained earnings

Retained earnings mainly represent all current and prior year profits as disclosed in the statement of profit and loss and other
comprehensive income pertaining to remeasurement gains/(losses) arising from the actuarial valuation of the defined benefit
plan less dividend distribution. The expense towards transaction cost and the tax on buy-back amounting to ? Nil (31-03¬
2024: ? 484) has been debited directly to the retained earnings.

Notes:

(i) Working capital loans (secured) represents cash credit and bills discounted with various banks. These working capital loans
are secured by joint pari-passu first charge on all the current assets and property, plant and equipment of:

i) Land admeasuring 17.19 acres comprised in survey no. 70 of village Nandikonda, Mandal Peddavoora, District
Nalgonda in the State of Telangana together with all buildings and structures thereon and all plant and equipment
attached to the earth.

ii) House/premise bearing municipal no. 8-2-120/112/A/33 and 8-2-120/112/A/32 in plot no.100 admeasuring 1,166 sq.
yards with all its building and fixed assets situated at Road No.2, Banjara Hills, Hyderabad - 500034."

(ii) Working capital loans (unsecured) represents overdraft facility and bills discounted with various banks.

(iii) The rate of interest applicable was in the range of 4.155% to 9.30% p.a (31-03-2024: 3.84% to 8.90% p.a) for secured and
unsecured working capital loan.

(iv) Information about the Company’s exposure to interest rate, foreign currency and liquidity risks is included in Note 33.

(a) Gratuity

The Company has subscribed to a group gratuity scheme of Life Insurance Corporation of India (LIC). Under the said policy,
the eligible employees are entitled for gratuity upon their resignation, retirement or in the event of death in lumpsum after
deduction of necessary taxes up to a maximum limit of ?2. Liabilities in respect of the Gratuity Plan are determined by an
actuarial valuation, based upon which the Company makes contributions to the Gratuity Fund. The defined benefit plans
expose the Company to actuarial risk, interest rate risk and investment risk etc.

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 liability.

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non
availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

The Gratuity plan is administered through Group Gratuity Scheme with Life Insurance Corporation of India ('LIC'). Every
employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary)
for each completed year of service or part thereof in excess of six months.

The Company has determined that, in accordance with the terms and conditions of the gratuity plan, and in accordance with
statutory requirements (including minimum funding requirements) of the plan of the relevant jurisdiction, the present value of
refund or reduction in future contributions is not lower than the balance of the total fair value of the plan assets less the total
present value of obligations. As such, no decrease in the defind benefit asset is necessary at 31 March 2025 (31 March 2024:
no decrease in defined benefit asset). Project unit credit method has been used for valuation.

The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the
yields/rates available on applicable bonds on the current valuation date.

The salary growth indicated above is the Company's best estimate of an increase in salary of the employees in future
years, determined considering the general trend in inflation, seniority, promotion, past experience and other relevant
factors such as demand and supply in employment market etc.

Attrition rate indicated above represents the Company's best estimates of employee turnover in future (other than on
account of retirement, death or disablement) determined considering various factors such as nature of business, retention
policy, industry factors, past experience etc.

Assumption regarding mortality are based on published statistics and mortality tables by Insurance Regulatory and
Development Authority of India.

(viii) Sensitivity analysis:

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have effected the defined benefit obligations and current service cost by the amounts shown below:

(xi) The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 7 years (Previous
year: 11 years).

(b) Compensated absences:

The accrual for unutilised leave is determined for the entire available leave balance standing to the credit of the employees at
the year-end. The value of such leave balances that are eligible for carry forward, is determined by an actuarial valuation as
at the end of the year and is charged to the statement of profit and loss. The actual liability towards leave obligations as at
31-03-2025 is ? 557 (31-03-2024: ? 480). Expense recognised in the standalone statement of profit and loss under employee
benefit expense is ? 157 (31-03-2024: ? 107).

The Company did not recognise deferred tax assets of ? 2,564, primarily on MAT credit entitlement, because it is not probable
that foreseeable future taxable profit will be available against which the Company can use the benefits therefrom after taking
into consideration the tax holiday units/ benefits available including financial projections, business plans and the availability of
sufficient taxable income. The above MAT credit expires at various dates ranging from Assesment year 2029 through 2039.

(F) The Company has established the comprehensive system of maintenance of information and documents as required by
the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. Since the law requires existence of
such information and documentation to be contemporaneous in nature, the Company is in the process of updating the
documentation for the international transactions and specified domestic transactions entered into with associated enterprises
during the financial year and expects such records to be in existence latest by 31 October 2025 as required by law. The
management confirms its international transaction are at arms' length price so that aforesaid legislation will not have any
impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

The Company’s financial liabilities comprise of borrowings from banks, trade payables and other financial liabilities. The main
purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include
loans, trade receivables, other financial assets, cash and cash equivalents and other bank balances that derive directly from
its operations. The Company also holds certain investments in entities other than in subsidiaries.

The fair value of cash and cash equivalents, other bank balances, trade receivables, loans, investment in quoted and unquoted
debentures and bonds, borrowings, trade payables, other financial assets and other financial liabilities approximate their
carrying amount largely due to the nature of these instruments. The Company's loans have been contracted at market rates
of interest. Accordingly, the carrying value of such loans approximate fair value.

B. Measurement of fair values

Valuation technique and significant unobservable inputs

Level 1: The fair value of the quoted equity investments are based on market price at the reporting date.

Level 3: The Investments measured at fair value and falling under fair value hierarchy Level 3 are valued on the basis of
valuation reports provided by valuers with the exception of certain investments, where the impact of fair valuation of investment
is considered as insignificant and hence carrying value and fair value is considered as same. The valuers have considered
discounted cashflow method for the purpose of valuation of investments. The significant unobservable inputs involved are
primarily growth rate, discount rate and terminal growth rate. The relationship of significant unobservable value and fair
value is as follows:

the estimated fair value will increase/(decrease) if the expected growth rate and terminal rate increases/(decreases);
the estimated fair value will (decrease)/increase if the expected discount rate increases/(decreases)"

Transfer between Level 1 and 2

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

33. Financial risk management

The Board of Directors of the Company has overall responsibility for the establishment and deployment of risk management
framework. The Board of Directors have adopted a Risk Policy, which empowers the management to access and monitor the risk
management parameters along with action taken and the same is updated to Board of Directors.

The Company’s risk management policies are established to identify and analyse the risks being faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and
management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees
understand their roles and obligations.

The Audit Committee of the Company oversees how management monitors compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risk faced by the Company.
The Audit Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of
risk management controls and procedures, the result of which are reported to the Audit Committee.

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 risks: interest rate risk and currency risk. Financial instruments affected by
market risk include borrowings, deposits, loans, 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's entire borrowings carried at amortised cost are variable rate instruments and
are subject to fluctuation because of a change in market interest rates. The Company considers the impact of fair value
interest rate risk on variable rate borrowings as not material.

ii. Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company is exposed to currency risk to the extent that there is mismatch between the
currencies in which sales, purchase are denominated and the respective functional currencies of the Company. The
Company exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers and loans given. Credit
risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding
accounts receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective
of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the
counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables:

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 and country in which the customer operates, also has an influence on
credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

As per simplified approach, the Company makes provision of expected credit losses on trade receivable using a provision
matrix to mitigate the risk of default payment and make appropriate provision at each reporting date wherever required.

The Company has one customer who contributed more than 10% of the Company's total revenue during the current year and
previous year. The revenue from such major customer(s) during the year is ? 26,862 (31-03-2024: ?18,283) and the outstanding
amount as at 31-03-2025 amounts to ? 7,308 (31-03-2024: ?6,409).

Other financial assets:

Other financial assets primarily consists of cash and cash equivalents and deposits. Credit risk on cash and cash equivalents
and deposits with banks and financial institutions are generally low as the said deposits have been made with the banks and
financial institutions who have been assigned high credit rating by international and domestic credit rating agencies.

Investments in other than subsidiaries are strategic investments in the normal course of business of the Company. Loans to
related parties are given for business purposes. The Company reassesses the recoverability of loans periodically. Interest
recoveries from these loans are regular and there is no interest receipt defaults.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

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 entities 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. The Company has no long¬
term borrowings and believes that the working capital loan is sufficient for its current requirements. Accordingly, no liquidity
risk is perceived.

Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual
maturities for all non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash
flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

34. Capital 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. The Company also proposes 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. Total capital is the total equity as shown in the Standalone Balance Sheet. Currently, the Company primarily monitors its
capital structure on the basis of gearing ratio. Management is continuously evolving strategies to optimise the returns and reduce
the risks. It includes plans to optimise the financial leverage of the Company.

The Company is contesting the above demand including few land related claims and the management believes that its
position will likely be upheld in the appellate process and no expenses has been accrued in the standalone financial
statements for the demand raised/ show cause notice received as the ultimate outcome of these proceedings will
not have a material adverse effect on the Company's standalone financial statements. Pending resolution of the
aforesaid respective proceedings, it is not practicable for the Company to estimate the timing of cash outflows, if any, in
respect of the above.

(ii) The Company is contesting certain process and product patent infringement cases filed against it by the innovators
in the ordinary course of business. A few of these cases pertain to products already launched by the Company in the
market. These cases are pending before different authorities / courts and most of the claims involve complex issues.
The outcome from these claims are uncertain due to a number of factors involved in legal trial such as stage of the
proceedings and the overall length and extent of pre-trial discovery; the entitlement of the parties to an action to appeal
a decision; clarity as to theories of liability; damages and governing law; uncertainties in timing of litigation; and the
possible need for further legal proceedings to establish the appropriate amount of damages, if any. Often, these issues
are subject to uncertainties and therefore the probability of a loss, if any, being sustained and an estimate of the amount
of any loss is difficult to ascertain. Consequently, for a majority of these claims, it is not possible to make a reasonable
estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. Further, at
present, the management does not expect such liabilities to be significant.

(iii) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company
does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.

39. The Company does not have any long-term contracts including derivatives for which there are any material foreseeable losses.

(iii) 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.

(iv) The aggregate amount of revenue expenditure incurred by the Company during the year on Research and Development and
shown in the respective heads of account is ? 3,235 (31-03-2024:? 2,541).

(v) The Company does not have any transaction which is not recorded in the books of account and has been surrendered or
disclosed as income during the current year or previous 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).

(vi) There are no proceeding initiated or pending against the Company as at 31-03-2025 and as at 31-03-2024 under Prohibition
of Benami Property Transactions Act, 1988 (as amended in 2016).

(vii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lenders.

(viii) Compliance with number of layers of companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read
with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

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

(x) The Company has not traded or invested in Crypto currency or Virtual currency during the current year and previous year.

(xi) There are no loans or advances in the nature of loans that are granted to promoters, directors, KMP's and related parties (as
defined under the Companies Act, 2013) either severally or jointly with any other person, that are:

a) repayable on demand; or

b) without specifying any terms or period of repayment\

The loan to subsidiaries are given for general business purpose. The said loan carries an interest rate of 5% p.a. (31¬
03-2024: 5% p.a.).

As per our Report of even date attached

for B S R and Co for and on behalf of the Board of Directors

Chartered Accountants NATCO Pharma Limited

ICAI Firm Registration No. 128510W CIN: L24230TG1981PLC003201

Amit Kumar Bajaj V C Nannapaneni Rajeev Nannapaneni

Partner Chairman and Managing Director Vice Chairman and Chief Executive Officer

Membership Number: 218685 DIN: 00183315 DIN: 00183872

Venkat Ramesh Chekuri S V V N Appa Rao

Company Secretary Chief Financial Officer

M. No. ACS41964

Place: Hyderabad Place: Hyderabad

Date: 28 May 2025 Date: 28 May 2025