2.16 Provisions, contingent liabilities and
contingent assets

Provisions are recognised when present obligations
as a result of past events will probably lead to an
outflow of economic resources from the Company
and they can be estimated reliably. Timing or amount
of the outflow may still be uncertain. A present
obligation arises from the presence of a legal or
constructive obligation that has resulted from past
events.

Provisions are measured at the best estimate of
expenditure required to settle the present obligation
at the reporting date, based on the most reliable
evidence, including the risks and uncertainties and
timing of cash flows associated with the present
obligation.

In those cases where the possible outflow of
economic resource as a result of present obligations
is considered improbable or remote, or the amount
to be provided for cannot be measured reliably, no
liability is recognised in the balance sheet.

Any amount that the Company can be virtually
certain to collect from a third party with respect to
the obligation is recognised as a separate asset up to
the amount of the related provisions. All provisions
are reviewed at each reporting date and adjusted to
reflect the current best estimate.

Contingent assets are not recognised.

2.17 Share based compensation

All employee services received in exchange for
the grant of any equity-settled share-based
compensation are measured at their fair values.
These are indirectly determined by reference to the
fair value of the share options awarded. Their value
is appraised at the grant date and excludes the impact
of any non-market vesting conditions (for example,
profitability and sales growth targets).

All share-based compensation is ultimately
recognised as an expense in the statement of profit
and loss with a corresponding credit to equity (Stock
compensation reserve). If vesting years or other
vesting conditions apply, the expense is allocated
over the vesting year, based on the best available
estimate of the number of share options expected
to vest. Non-market vesting conditions are included
in assumptions about the number of options that
are expected to become exercisable. Estimates are
subsequently revised, if there is any indication that
the number of share options expected to vest differs
from previous estimates.

No adjustment is made to expense recognised in prior
years if fewer share options are ultimately exercised
than originally estimated. Upon exercise of share
options, the proceeds received net of any directly
attributable transaction costs up to the nominal value
of the shares issued are allocated to share capital with
any excess being recorded as Securities premium.

2.18 Earnings per share:

Basic earnings per share is computed by dividing
the net profit for the year attributable to the equity
shareholders of the Company by the weighted
average number of equity shares outstanding
during the year. The weighted average number of
equity shares outstanding during the year and for
all years presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit for the year
attributable to equity shareholders and the weighted
average number of shares outstanding during the
year is adjusted for the effects of all dilutive potential
equity shares.

2.19 Statement of cash flow

Statement of Cash Flows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is
reported using indirect method, adjusting the profit
before tax excluding exceptional items for the effects
of:

(i) changes during the year in inventories and
operating receivables and payables, transactions
of a non-cash nature;

(ii) non-cash items such as depreciation, provisions,
unrealised foreign currency gains and losses;
and

(iii) all other items for which the cash effects
are investing or financing cash flows.
Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as at the date of Balance Sheet.

2.20 Critical accounting estimates and significant
judgement in applying accounting policies

When preparing these financial statements,
management undertakes a number of judgments',
estimates and assumptions about the recognition
and measurement of assets, liabilities, income and
expenses.

In the process of applying the Company's accounting
policies, the following judgments have been made
apart from those involving estimates, which have the

most significant effect on the amounts recognised in
the financial statements. Judgments are based on the
information available at the date of balance sheet.

Leases

Ind AS 116 requires Company to make certain
judgements and estimations, and those that are
significant are disclosed below.

Critical judgements are required when an entity is,

• determining whether or not a contract contains
a lease

• establishing whether or not it is reasonably
certain that an extension option will be exercised

• considering whether or not it is reasonably
certain that a termination option will not be
exercised

Key sources of estimation and uncertainty include:

• calculating the appropriate discount rate

• estimating the lease term
Estimation Uncertainty

The preparation of these financial statements is in
conformity with Ind AS and requires the application
of judgment by management in selecting appropriate
assumptions for calculating financial estimates,
which inherently contain some degree of uncertainty.
Management estimates are based on historical
experience and various other assumptions that are
believed to be reasonable in the circumstances, the
results of which form the basis for making judgments
about the reported carrying values of assets and
liabilities and the reported amounts of revenues
and expenses that may not be readily apparent from
other sources. Actual results may differ from these
estimates under different assumptions or conditions.

Estimates of life of various tangible and intangible
assets, and assumptions used in the determination
of employee-related obligations and fair valuation
of financial and equity instrument, impairment of
tangible and intangible assets represent certain of
the significant judgements and estimates made by
management.

Useful lives of various assets

Management reviews the useful lives of depreciable
assets at each reporting date, based on the expected
utility of the assets to the Company. The useful life
are specified in note 2.5 and 2.7

Post-employment benefits

The cost of post-employment benefits is determined
using actuarial valuations. The actuarial valuation
involves making assumptions about discount rates,
expected rate of return on assets, future salary
increases and mortality rates. Due to the long term
nature of these plans such estimates are subject to
significant uncertainty.

Fair value of financial instruments

Management uses valuation techniques in measuring
the fair value of financial instruments where active
market quotes are not available. In applying the
valuation techniques, management makes maximum
use of market inputs and uses estimates and
assumptions that are, as far as possible, consistent
with observable data that market participants would
use in pricing the instrument. Where applicable data
is not observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm's
length transaction at the reporting date.

Impairment

An impairment loss is recognised for the amount by
which an asset's or cash-generating unit's carrying
amount exceeds its recoverable amount. To determine
the recoverable amount, management estimates
expected future cash flows from each asset or cash¬
generating unit and determines a suitable interest
rate in order to calculate the present value of those
cash flows. In the process of measuring expected
future cash flows, management makes assumptions
about future operating results. These assumptions
relate to future events and circumstances. The
actual results may vary, and may cause significant
adjustments to the Company's assets.

In most cases, determining the applicable discount
rate involves estimating the appropriate adjustment
to market risk and the appropriate adjustment to
asset-specific risk factors.

Current and deferred income taxes

Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment can
involve complex issues, which can only be resolved
over extended time years. The recognition of taxes
that are subject to certain legal or economic limits or
uncertainties is assessed individually by management
based on the specific facts and circumstances.

Expected credit loss

The Company applies expected credit losses (ECL)
model for measurement and recognition of loss
allowance on the following:

i Trade receivables.

ii Financial assets measured at amortised cost
other than trade receivables.”

In case of trade receivables, the Company follows
a simplified approach wherein an amount equal
to lifetime ECL is measured and recognised as
loss allowance. In case of other assets (listed as ii
above), the Company determines if there has been a
significant increase in credit risk of the financial asset
since initial recognition. If the credit risk of such assets
has not increased significantly, an amount equal to
twelve month ECL is measured and recognised as
loss allowance. However, if credit risk has increased
significantly, an amount equal to lifetime ECL is
measured and recognised as loss allowance.

The financial statements have been prepared using
the measurement basis specified by Ind AS for each
type of asset, liability, income and expense. The
measurement bases are more fully described in the
accounting policies.

The estimates and underlying assumptions are
reviewed on an on-going basis. Revisions to
accounting estimates are recognised in the year in
which the estimate is revised if the revision affects
only that year or in the year of the revision and future
years if the revision affects both current and future
years.

2.21 Recent accounting pronouncements

New and amended standards adopted by the
Company:

All the Ind AS issued and notified by the Ministry
of Corporate Affairs ('MCA') under the Companies
(Indian Accounting Standards) Rules, 2015 (as
amended) till the financial statements are authorised
have been considered in preparing these financial
statements.

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 leaseback 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.

(All amounts in million of Indian Rupees, unless otherwise stated)

The Company has an authorised share capital of 200,000,000 equity shares of ' 2 each (31 March 2024 - 200,000,000 of
' 2 each).

b) Preference shares

The Company has an authorised share capital of 600,000 Cumulative Convertible Preference Shares of ' 100 each
(31 March 2024 - 600,000 of ' 100 each).

c) Reserves

Securities premium reserve - The amount received by the Company over and above the face value of shares issued is shown
under this head.

Retained Earnings - Accumulated earnings include all current and prior years profits as disclosed in the statement of profit
and loss.

Stock compensation reserve - Stock compensation reserve consists of employee compensation cost allocated over the
vesting year of options granted to employees. Such cost is recognised in statement of profit and loss and is credited to the
reserve. Upon exercise of options, such reserves are reclassified to equity share capital and security premium.

d) Dividends

The Company declares and pays dividends in Indian Rupees. Dividends are taxable in the hands of the shareholders and tax
is deducted by the Company at applicable rates.

The Board of Directors at its meeting held on May 15, 2025 have recommended a final dividend of 250% i.e. ' 5 per equity
share of face value of ' 2 each for the financial year ended March 31, 2025. The Dividend is subject to the approval of the
shareholders at the ensuing Annual General Meeting (AGM).

(e) Employees Stock options Schemes 2021
i) Scheme details

The Board, at its meeting held on 6 April 2021 had approved the Alivus Life Sciences Limited (formerly Glenmark Life
Sciences Limited) - Employee Stock Option Scheme, 2021 (ESOS). Further, the Shareholders' of the Company also
approved the ESOS at the Extra-Ordinary General Meeting held on 9 April 2021.

9,51,734 ESOP options have been granted to the eligible employees / Directors at Nomination and Remuneration
Committee meeting held on May 17, 2021. During the Financial Year 2024-2025, 118,715 (2023-24- 4,190) options
were cancelled and 9,880 options (2023-24 - NIL) were issued or exercised under Employees Stock Options Scheme
viz. ESOS' 2021. As of 31 March 2025, 744,927 (31 March 2024, 873,522) options were outstanding and are due for
exercise.

On exercising the options so granted under the ESOS of the Company, the paid-up equity share capital of the Company
will increase by a like number of shares. Employee stock compensation charged during the year is NIL (31 March 2024,
' 43.75 million) (Refer Note 20)

(c) Right, Preference and restriction on shares

The Company presently has only one class of ordinary equity shares. For all matters submitted to vote in the shareholders
meeting, every holder of ordinary equity shares, as reflected in the records of the Company on the date of the shareholders'
meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of
capital in the event of liquidation of the Company.

Note 23 - Employee Post-Retirement Benefits

The following are the employee benefit plans applicable to the employees of the Company:
a) Gratuity (defined benefit plan)

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity
Plan”) covering eligible employees. The Gratuity Plan provides for a lumpsum payment to vested employees on retirement,
death, incapacitation or termination of employment of amounts that are based on salary and tenure of employment.
Liabilities with regard to the gratuity plan are determined by actuarial valuation.

Plan is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit
at the time of retirement or termination of the employment on completion of five years or death while in employment. The
level of benefit provided depends on the member's length of service and salary at the time of retirement/termination age.

c) Provident fund and others (defined contribution plan)

Apart from being covered under the gratuity plan described earlier, employees participate in a provident fund plan; a defined
contribution plan. The Company makes annual contributions based on a specified percentage of salary of each covered
employee to a government recognised provident fund. The Company does not have any further obligation to the provident
fund plan beyond making such contributions. Upon retirement or separation an employee becomes entitled for this lumpsum
benefit, which is paid directly to the concerned employee by the fund. During the year ended 31 March 2025, the Company
contributed ' 92.35 million (31 March 2024 - ' 83.32 million) towards the provident fund plan.

During the years mentioned above there has been no transfers amongst the fair value hierarchy.

The fair value of all the Financial instrument measured at amortised cost are based on discounted cash flow using a discount
rate. They has been classified at level 2 in fair value hierarchy due to the use of valuation techniques which measured the use of
observable market data.

Trade receivables comprise amounts receivable from the sale of goods and services.

Investment majorly comprises of Investment in mutual fund which has been valued at NAV as on the Balance Sheet date.

The management considers that the carrying amount of trade and other receivables approximates their fair value.

Bank balances and cash comprise cash and short-term deposits held by the Company. The carrying amount of these assets
approximates their fair value.

Trade and other payables principally comprise amounts outstanding for trade purchases and on-going costs. The management
considers that the carrying amount of trade payables approximates to their fair value.

Fair value hierarchy:

Level 1 : Category includes financial assets and liabilities, that are measured in whole or in significant part by reference to
published quotes in an active market.

Level 2 : Category includes financial assets and liabilities measured using a valuation technique based on assumptions that
are supported by prices from observable current market transactions. These include assets and liabilities for which pricing is
obtained via pricing services, but where prices have not been determined in an active market, financial assets with fair values
based on broker quotes and assets that are valued using the Company's own valuation models whereby the material assumptions
are market observable.

Level 3 : Category includes financial assets and liabilities measured using valuation techniques based on non market observable
inputs. This means that fair values are determined in whole or in part using a valuation model based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. However, the fair value measurement objective remains the same, that is, to estimate an exit price from
the perspective of the Company. The main asset classes in this category are unlisted equity investments as well as unlisted funds.

Valuation Technique used to determine Fair Value :

The fair value of all the Financial instrument measured at amortised cost are based on discounted cash flow using a discount rate
determined considering the borrowing rate charged by the bank.

The fair value of all the Financial instruement measured at fair value through profit and loss are based on the NAV.

Note 30 - Leases

Company as lessee

The Company has applied short term and low value exemption for leases and accordingly are excluded from Ind AS 116. The
leases includes non cancellable years and renewable option at the discretion of lessee which has been taken into consideration
for determination of lease term.

Note 31- Risk Management Objectives and Policies

The Company is exposed to a variety of financial risks which results from the Company's operating and investing activities. The
Company focuses on actively securing its short to medium term cash flows by minimising the exposure to financial markets.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.

Financial assets that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents,
accounts receivables, other receivables, investment securities and deposits. By their nature, all such financial instruments
involve risk including the credit risk of non-performance by counter parties.

The Company's cash equivalents and deposits are held in reputed banks, which management belives are of high credit quality
and hence no impairment allowances has been recognized.

The Company's trade and other receivables are actively monitored to review credit worthiness of customers to whom credit
terms are granted and avoid significant concentrations of credit risks.

Foreign Currency sensitivity

The foreign currency sensitivity analysis has been performed in relation to US Dollar (USD), Euro (EUR), Great Britain Pound
(GBP) and Russian Ruble (RUB). These are unhedged foreign currency.

Considering the volatility in direction of strengthening US Dollar upto 10%, the sensitivity analysis has been disclosed at 10%
movements on strengthening and weakening effect for presenting comparable movement due to currency fluctuations.

The Company's cash equivalents and deposits are held in reputed banks, which management believes are of high credit quality
and hence no impairment allowances has been recognized.

Trade receivables are usually due within 60-180 days. Generally and by practice most customers enjoy a credit term of
approximately 180 days and are not interest bearing, which is the normal industry practice. All trade receivables are subject
to credit risk exposure. However, the Company does not identify specific concentrations of credit risk with regard to trade and
other receivables, as the amounts recognised represent a large number of receivables from various customers.

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been
managed by each business segment through credit approvals, establishing credit limits and continuously monitoring the credit
worthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption
of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. However, as there were no
material bad debts in past years and there is no material receivables outstanding for more than 6 months, company does not have
any expected credit loss assesment.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the
Company, and incorporates this information into its credit risk controls. The Company's policy is to deal only with creditworthy
counterparties.

The Company's management considers that all the above financial assets that are not impaired for each of the reporting dates
and are of good credit quality, including those that are past due. None of the Company's financial assets are secured by collateral
or other credit enhancements.

In respect of trade and other receivables, the Company's credit risk exposure towards any single counterparty or any group of
counterparties having similar characteristics is considered to be negligible. The credit risk for liquid funds and other short-term
financial assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Investment indicate investment in quoted mutual funds with low risk.

Liquidity risk analysis

The Company manages its liquidity needs by carefully monitoring cash-outflows due in day-to-day business. Liquidity needs are
monitored in various time bands, on a day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection.
Long-term liquidity needs for a 180-day and a 360-day lookout year are identified monthly.

The Company maintains cash and marketable securities to meet its liquidity requirements for up to 30-day years. Funding in
regards to long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability
to sell long-term financial assets.

Note - 36

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

(ii) The Company does not have any 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 year.

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

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

(vi) No funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources
or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities ('the intermediaries'), with
the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ('the
Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

(vii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ('the Funding
Parties'), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party ('Ultimate Beneficiaries') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company have sanctioned borrowings/facilities from banks on the basis of security of current assets. The quarterly
returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with
the books of accounts.

(ix) The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting software
which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the
books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has used accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled at the application level. During the year ended 31 March 2025, the Company has not
enabled the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct
data changes. Further, the audit trail has been preserved by the Company as per the statutory requirements for record
retention at the application level.

Note 37 - Authorisation of Financial Statements

The financial statements were approved by the Board of Directors at their meeting held on 15^th May, 2025.

As per our report of even date.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants Alivus Life Sciences Limited (formerly Glenmark Life Sciences Limited)

Firm Registration No: 001076N/N500013

Yashwant M. Jain Yasir Rawjee Vinod Naik

Partner Managing Director & CEO Executive Director

Membership Number -118782 DIN: 01965174 DIN: 03635487

Tushar Mistry Rudalf Corriea

Chief Financial Officer Company Secretary & Compliance Officer

Place: Mumbai Place: Mumbai

Date: 15 May 2025 Date: 15 May 2025