m. Provisions contingent liabilities and
contingent assets

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, 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, for example,
under an insurance contract, the reimbursement
is recognised as a separate asset, but only when
the reimbursement is virtually certain. 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.

Onerous contracts

A contract is considered to be onerous when the
expected economic benefits to be derived by the

Company from the contract are lower than the
unavoidable cost of meeting its obligations under
the contract. The provision for an onerous contract
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.
Before such a provision is made, the Company
recognises any impairment loss on the assets
associated with that contract.

Contingent liabilities

Provision in respect of loss contingencies relating
to claims, litigations, assessments, fines and
penalties are recognised when it is probable that
a liability has been incurred and the amount can
be estimated reliably. Contingent liabilities are
recognised when there is a possible obligation
arising from past events, the existence of which
will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events
not wholly within the control of the Company or
a present obligation that arises from past events
where it is either not probable that an outflow of
resources will be required to settle the obligation or
a reliable estimate of the amount cannot be made.

n. Cash and cash equivalents

Cash and cash equivalents in the balance sheet
comprises of cheques, cash at banks and on hand
and short-term deposits with an original maturity
of three months or less, which are subject to an
insignificant risk of changes in value. For the
purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company's cash Management.

o. Borrowing cost

Borrowing costs consist of interest and other
costs that an entity incurs in connection with the
borrowing of funds. Borrowing cost also includes
exchange differences to the extent regarded as an
adjustment to the borrowing costs. Borrowing costs
directly attributable to the acquisition, construction
or production of an asset that necessarily takes
a substantial period of time to get ready for its
intended use or sale are capitalised as part of cost
of the asset. All other borrowing costs are expensed
in the period in which they occur.

p. Impairment of non-financial assets

The Company assesses, at each reporting date,
whether there is an indication of impairment. If

any indication exists, or when annual impairment
testing for an asset is required, the Company
estimates the asset's recoverable amount. An asset's
recoverable amount is the higher of an asset's or
cash-generating unit's (CGU) fair value less costs of
disposal and its value in use. Recoverable amount is
determined for the purpose of impairment testing,
assets are grouped together into the smallest
group of assets that generate cash inflows from
continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the
"cash-generating unit"). When the carrying amount
of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written
down to its recoverable amount.

In assessing value in use, the estimated future cash
flows are discounted to their present value using a
pre-tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset. In determining fair value
less costs of disposal, recent market transactions are
taken into account. If no such transactions can be
identified, an appropriate valuation model is used.
These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded
companies or other available fair value indicators.

The Company bases its impairment calculation on
detailed budgets and forecast calculations, which
are prepared separately for each of the Company's
CGUs to which the individual assets are allocated.
These budgets and forecast calculations generally
cover a period of five years. Impairment losses
of continuing operations, are recognised in the
statement of profit and loss.

An assessment is made at each reporting date
to determine whether there is an indication that
previously recognised impairment losses no
longer exist or have decreased. If such indication
exists, the Company estimates the asset's or CGU's
recoverable amount. A previously recognised
impairment loss is reversed only if there has been
a change in the assumptions used to determine
the asset's recoverable amount since the last
impairment loss was recognised. The reversal is
limited so that the carrying amount of the asset
does not exceed its recoverable amount, nor
exceed the carrying amount that would have been
determined, net of depreciation, had no impairment
loss been recognised for the asset in prior periods/
years. Such reversal is recognised in the statement
of profit and loss unless the asset is carried at a

revalued amount, in which case, the reversal is
treated as a revaluation increase.

Goodwill is tested for impairment annually and
when circumstances indicate that the carrying value
may be impaired. Impairment is determined for
goodwill by assessing the recoverable amount of
each CGU (or Group of CGUs) to which the goodwill
relates. When the recoverable amount of the CGU is
less than its carrying amount, an impairment loss is
recognised. Impairment losses relating to goodwill
cannot be reversed in future periods.

q. Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assetsInitial recognition and measurement

All financial assets are recognised initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales
of financial assets that require delivery of assets
within a time frame established by regulation or
convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that
the Company commits to purchase or sell the asset.

Subsequent measurement

Any financial instrument, which does not meet the
criteria for categorization at amortized cost or at
FVTOCI (fair value through other comprehensive
income), is classified at FVTPL (fair value through
profit and loss). In addition, the company may
elect to designate a debt instrument, which
otherwise meets amortized cost or FVTOCI criteria,
at FVTPL. However, such election is allowed only
if doing so reduces or eliminates a measurement
or recognition inconsistency (referred to as
'accounting mismatch'). The Company has not
designated any debt instrument at FVTPL. Debt
instruments included within the FVTPL category are
measured at fair value with all changes recognized
in the statement of profit and loss.

Equity instruments:

All equity investments in subsidiaries are measured
at cost less impairment. All equity investments in
scope of Ind AS 109 - Financial Instruments are
measured at fair value. Equity investments which

are held for trading are classified as FVTPL. For all
other equity investments, the Company may make
an irrevocable election to present in OCI subsequent
changes in fair value. The Company makes such
election on an instrument by instrument basis. The
classification is made on initial recognition and
is irrevocable.

If the Company decides to classify an equity
instrument at FVOCI, then all fair value changes on
the instrument, excluding dividends, are recognised
in OCI. There is no recycling of amounts from OCI
to statement of profit and loss, even on sale of
investment. However, the Company may transfer
the cumulative gain/loss within equity. Equity
instruments included within the FVTPL category are
measured at fair value with all changes recognised
in the statement of profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed
from the Company's balance sheet) when:

i) the rights to receive cash flows from the asset
have expired, or

ii) the Company has transferred its rights to
receive cash flows from the asset, and the
Company has transferred substantially all
the risks and rewards of the asset, or the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109 - Financial
instruments, the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets:

(i) Financial assets that are debt instruments, and
are measured at amortised cost, e.g. loans,
deposits, debt securities, etc.

(ii) Trade receivables that result from transactions
that are within the scope of Ind AS 115 -
Revenue from contracts with customers.

The Company follows 'simplified approach' for
recognition of impairment loss allowance for trade
receivables. The application of simplified approach
does not require the Company to track changes in

credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.

For recognition of impairment loss on other financial
assets and risk exposure, the Company determines
whether there has been a significant increase in the
credit risk since initial recognition. If credit risk has
not increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
allowance based on 12-month ECL (simplified
approach). Lifetime ECL are the expected credit
losses resulting from all possible default events
over the expected life of a financial instrument.The
12-month ECL is a portion of the lifetime ECL which
results from default events that are possible within
12 months after the reporting date.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that the
entity expects to receive (i.e., all cash shortfalls),
discounted at the original EIR (effective interest
rate). When estimating the cash flows, an entity is
required to consider:

(i) All contractual terms of the financial
instrument (including prepayment, extension,
call and similar options) over the expected life
of the financial instrument. However, in rare
cases when the expected life of the financial
instrument cannot be estimated reliably, then
the entity is required to use the remaining
contractual term of the financial instrument

(ii) Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the statement of profit and
loss. This amount is reflected under the head other
expenses/other income in the statement of profit
and loss. ECL is presented as an allowance, i.e., as
an integral part of the measurement of those assets
in the balance sheet.The allowance reduces the net
carrying amount. Until the asset meets write-off
criteria, the Company does not reduce impairment
allowance from the gross carrying amount.

For assessing increase in credit risk and impairment
loss, the Company combines financial instruments
on the basis of shared credit risk characteristics
with the objective of facilitating an analysis that is
designed to enable significant increases in credit
risk to be identified on a timely basis.The Company
does not have any purchased or originated credit-
impaired (POCI) financial assets, i.e., financial assets
which are credit impaired on purchase/ origination.

Financial liabilitiesInitial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at fair
value and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs. The Company's financial liabilities include
trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee
contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on
their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities designated upon
initial recognition at fair value through profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition,
and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk

are recognized in OCI. These gains/ loss are not
subsequently transferred to statement of profit
and loss. However, the Company may transfer the
cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the statement of profit and loss.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

Financial liabilities at amortised cost (Loans
and borrowings)

This is the category most relevant to the Company.
After initial recognition, interest-bearing loans
and borrowings are subsequently measured at
amortised cost using the EIR method. Gains and
losses are recognised in profit or loss when the
liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR
amortisation is included as finance costs in the
statement of profit and loss.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made
for financial assets which are equity instruments
and financial liabilities. For financial assets which
are debt instruments, a reclassification is made
only if there is a change in the business model
for managing those assets. Changes to the
business model are expected to be infrequent. The
Company's senior Management determines the
change in the business model as a result of external
or internal changes which are significant to the
Company's operations. Such changes are evident
to the external parties. A change in the business
model occurs when the Company either begins or
ceases to perform an activity that is significant to
its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

r. Derivative financial instruments

The Company uses derivative financial instruments,
such as forward currency contracts to hedge its
foreign currency risks. Such derivative financial
instruments are initially recognised at fair value on
the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.

Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when
the fair value is negative.The forward contracts that
meet the definition of a derivative under Ind AS 109
are recognised in the statement of profit and loss.
Any gains or losses arising from changes in the
fair value of derivatives are taken directly to profit
or loss.

s. Dividend distribution to equity holders of the
Company

The Company recognises a liability to make
dividend distribution to equity holders when the
distribution is authorised and the distribution is
no longer at the discretion of the Company. As
per the Corporate laws in India, a final dividend
distribution is authorised when it is approved by the
shareholders whereas for interim dividend when
authorised by board of directors of the Company.
A corresponding amount is recognised directly in
equity. Non cash distribution are measured at fair
value of the assets distributed with fair value re¬
measurement recognised directly in equity.

t. Exceptional Items

Exceptional items refer to items of income or
expense, including tax items, within the statement

of profit and loss from ordinary activities which
are non-recurring and are of such size, nature
or incidence that their separate disclosure is
considered necessary to explain the performance
of the Company

u Recent accounting pronouncement

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 31,2026, MCA has notified following
Amendment to Ind AS, applicable to the Company
w.e.f. April 01,2025.

- I nd AS - 21 The Effects of Changes in Foreign
Exchange Rates Lack of Exchangeability.

- Ind AS 12 - Income Taxes relating to
International Tax Reform - Pillar Two Model
Rules - Exception to recognition and disclosure
of deferred tax.

- Ind AS 7 - Cash flow statement and Ind AS 107
- Financial Instrument Disclosures relating to
supplier finance arrangements.

- Ind AS 1-Presentation of Financial Statements
Classification of Liabilities as current or
non- current and non- current liabilities
with covenants.

The Company has reviewed the new
pronouncements and based on its evaluation has
determined that it does not have any significant
impact in its Standalone financial statements.

v New and amended standards issued but not
effective:

The MCA has issued certain amendments to Indian
Accounting Standards which are not yet effective
as at March 31, 2026. The Company has not early
adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

Key assumptions upon which the company has based its determinations of value-in-use include :

a) Estimated cash flows for five years, based on management's projections.

b) A terminal value arrived at by extrapolating the last forecasted year cash flows to perpetuity, using a constant
long-term growth rate ranging from 0% to 2%. This long term growth rate takes into consideration external
macroeconomic sources of data. Such long-term growth rate considered does not exceed that of the relevant
business and industry sector.

c) The after tax discount rates used are based on the Company's weighted average cost of capital.

d) The after tax discount rate used range from 15% to18% for Cash generating unit.

The Company believes that any reasonably possible change in the key assumptions on which a recoverable amount

is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash¬
generating unit.

Notes:

1. The Board of Directors of the Company at its meeting held on August 10, 2024 approved further investment in
GLS Pharma Limited through acquisition of 590,361 equity shares from the selling shareholders for an aggregate
consideration of ' 225.0 (constituting 49% of the equity share capital of GLS) following which GLS has become
the wholly owned subsidiary of the Company with effect from October 25, 2024.

2. Investment of ' 4.1 (March 31, 2025'4.1) on account of fair valuation of corporate guarantee given by the
Company on behalf of Lyfius Pharma Private Limited, a wholly - owned subsidiary of Aurobindo Antibiotics
Private Limited

Provision for impairment

The entity assesses at the end of each reporting period whether there is any indication that an asset may be impaired.
If any such indication exists, the entity shall estimate the recoverable amount of the asset. The recoverable value is
the value in use of the investments calculated using discounted cashflow method. When the recoverable amount
of the investment is less than its carrying amount, an impairment loss is recognised.

Value in use is generally calculated as the net present value of the projected post-tax cash flows plus a terminal value
of the business. Post-tax discount rate is applied to calculate the net present value of the post-tax cash flows and the
terminal growth rate is used to arrive at the terminal value of the business.

d) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ' 1 per share. Each holder of equity
shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees.The dividend proposed by the Board of Directors is
subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

I n the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining
assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts
exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) Unsecured term loan facility from HDFC bank amounts to Nil (March 31,2025: ' 7,700.0) and carries interest
rate Nil (March 31, 2025: 7.70% to 8.00%) which is linked to 1 Month Treasury bill rate. This term loan is
repayable in six equal monthly instalments beginning from the 13^th month following the first disbursement.
This term loan is being funded for the reimbursement of Capital and R&D expenditure incurred in the last
15 months starting from April 1,2023 to June 30, 2024.

(ii) Unsecured term loan facility from MUFG bank amounts to ' 4,300.0 (March 31,2025: ' 2,500.0) and carries
interest rate in the range of 6.67% to 7.8% (March 31,2025:7.80%) which is linked to 3-month Treasury Bill.
This term loan has a bullet repayment due after 18 months after the first drawdown. This term loan is for
the purposes of capital and maintenance expenditure & other general corporate purpose.

(iii) Unsecured term loan facility from Barclays bank amounts to ' 1,500.0 (March 31,2025: ' 1,500.0) and carries
interest rate in the range of 6.66% to 7.65% (March 31,2025: 7.65%) which is linked to the 3 Month Overnight
Index Swap (OIS). This term loan has a bullet repayment scheduled 15 months after the first drawdown.
This term loan is being funded for the purposes of funding the maintenance expenses, R&D expenses,
Capital advances & Capex. Unsecured term loan has financial covenants which is tested semi-annually on
30^th September and 31 March of each year. The company has complied with this covenant accordingly.

(b) Current

(i) All secured working capital demand loans carry interest rate of 7.50% (March 31,2025: 7.5%). It is secured
against all chargeable current assets, both present and future on pari passu basis.

(ii) All unsecured working capital demand loans carry interest rate in the range of 6.25% (March 31,2025: 7.15%
to 8.00%)

(iii) All secured packing credit foreign currency loans carry interest rate in the range of 2.04% to 4.28% (March
31,2025: 4.16% to 5.32%) with maturity within 6 months. It is secured against all chargeable current assets,
both present and future on pari passu basis.

(iv) All unsecured packing credit foreign currency loans carry interest rate in the range of 2.14% to 4.44% (March
31, 2025: 2.94% to 5.76%) with maturity within 6 months.

(v) All unsecured bills discounted carry interest rate in the range of 2.44% to 2.46% (March 31,2025: 2.89% to
5.85%).

Corporate guarantee given by the Company are in relation to its subsidiaries which aggregate to ' 5,240.0
(March 31,2025'9,220.0). Subsidiaries have availed loan against the said corporate guarantee which have
been considered as contingent liabilities (refer note 37).

In addition to the above, the Company along with a subsidiary is a party to certain pending disputes with
regulatory authorities relating to allotment of certain lands that have taken place in earlier years. During the
year 2018-19, pursuant to the order of the Honourable Appellate Tribunal, land belonging to APL Research
Centre Limited, subsidiary, which were attached earlier, were released after placing a fixed deposit of '131.6
with a bank as a security deposit with Enforcement Directorate. While the disposal of the cases are subject
to final judgement from the Central Bureau of Investigation (CBI) Special Court, in the assessment of the
Management and as legally advised, the allegations are unlikely to have a significant material impact on
the financial statements of the Company.

b) Disclosures related to defined benefit plan

I n respect of Gratuity, a defined benefit plan, the plan is funded with Life Insurance Corporation in the form
of a qualifying insurance policy governed by the payment of Gratuity Act, 1972. Under the Gratuity Act, Every
employee who has completed five years or more of service is entitled to gratuity on departure at 15 days last
drawn salary for each completed year of service or part thereof in excess of six months. The level of benefit
provided depends on the member's length of service and salary at the time of retirement/termination age.
Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each
year, the Company reviews the level of funding in gratuity fund and decides its contribution.The Company aims
to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of
gratuity payments in short to medium term.

This defined benefit plan exposes the Company to actuarial risk, such as investment risk, interest rate risk,
longevity risk and salary risk.

Investment Risk- The present value of the defined benefit plan liability denominated in Indian Rupee is
calculated using a discount rate determined by reference to market yields at the end of the reporting period on
government bonds.

Interest Risk- A decrease in the bond interest rate will increase the plan liability; however, this will be partially
offset by an increase in the return on the plan Assets.

Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan's liability.

Salary risk-The present value of the defined benefit plan liability is calculated by reference to the future salaries
of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Note:

i) All transactions with related parties are made on terms equivalent to those that prevail in arm's length
transactions. Outstanding balances for trade receivable, trade payable and other payables are unsecured,
interest free and settlement occurs in cash.The Company has not recorded any impairment of balances relating
to amounts owed by related parties during the year ended March 31, 2026 (March 31, 2025), provision for bad
and doubtful debts will be made on an aggregate basis i.e. not specific to party. The assessment is undertaken
each financial year through evaluating the financial position of the related party and the market in which the
related party operates.

38 HEDGING ACTIVITIES AND DERIVATIVES - DERIVATIVES NOT DESIGNATED AS HEDGING
INSTRUMENTS

The Company uses foreign currency denominated borrowings and foreign exchange forward contracts to
manage some of its transaction exposures. The foreign exchange forward contracts are not designated as
cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying
transactions, generally from one week to twelve months.

39 CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, share premium
and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital
management is to maximise the shareholder value.

The Company monitors capital using 'adjusted net debt to total equity ratio'. For this purpose, adjusted net debt
is defined as total borrowings, less cash and cash equivalents and other bank balances.

40 SEGMENT REPORTING

In accordance with Indian Accounting Standard (Ind AS) 108 on Operating segments, segment information has
been given in the consolidated financial statements of the Company, and therefore no separate disclosure on
segment information is given in this financial statements.

41 FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT
A. Accounting classifications and fair value hierarchy

The following table shows the carrying amounts and fair values of financial assets and financial liabilities,
including their fair value hierarchy.

ii. Transfer between Level 1 and 2

There have been no transfers between Level 1 and Level 2 or vice-versa in 2025-26 and no transfers
in either direction in 2024-25.

C. Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the
Company's risk management framework. The board of directors has established the Risk Management
Committee, which is responsible for developing and monitoring the Company's risk management policies.
The committee reports to the board of directors on its activities.

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 Company's audit committee 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 risks faced by the Company. The audit committee is assisted in its oversight role by
internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and
procedures, the result of which are reported to the audit committee.

The Company is exposed primarily to credit risk, liquidity risk and market risk (including fluctuations in
foreign currency exchange rates, interest rate risk and other price risk). The Company uses derivative
financial instruments such as forwards to minimise any adverse effect on its financial performance.

i. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or
customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk of default
and the risk of deterioration of credit worthiness as well as concentration of risks. Credit risk is controlled
by analysing credit limits and credit worthiness of customers on a continuous basis to whom the credit
has been granted after obtaining necessary approvals for credit. Financial instruments that are subject
to concentrations of credit risk principally consist of trade receivables, investments, derivative financial
instruments, cash and cash equivalents, loans and other financial assets.The Company establishes an
allowance for doubtful receivables and impairment that represents its estimate of incurred losses in
respect of trade and other receivables and investments.

Trade receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, the Management also evaluates the factors that may influence the credit risk of its
customer base, including the default risk and country in which the customers operate.The Management
has established a credit policy under which each new customer is analysed individually for credit
worthiness before the Company's standard payment and delivery terms are offered. The Company's
review includes external ratings, if available, financial statements, credit agency information, industry
information and in some case bank references. Sales limits are established for each customer and
reviewed quarterly.

The Company's receivables turnover is quick and historically, there was no significant default on account
of trade and other receivables.The Company assesses at each reporting date whether a financial asset
or a group of financial assets is impaired. Expected credit losses are measured at an amount equal to
the 12 months expected credit losses or at an amount equal to the life time expected credit losses if
the credit risk on the financial asset has increased significantly since initial recognition. The Company
has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience
and is adjusted for forward looking information.The maximum exposure to credit risk at the reporting
date is the carrying value of trade and other receivables. The Company does not hold collateral as
security. The Company evaluates the concentration of risk with respect to trade receivables as low, as
its customers are located in several jurisdictions and operate in largely independent markets.

The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are
available for use as per requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.The following
are the remaining contractual maturities of financial liabilities at reporting date:

Loan given to subsidiaries

Credit risk related to loan given to subsidiaries is not expected to be material.

Other financial assets

The Company maintains exposure in cash and cash equivalents and derivative instruments with
financial institutions.The Company has loan receivables outstanding from its subsidiaries amounting
to ' 12,065.4 (March 31, 2025 : ' 16,506.6).

The Company's maximum exposure to credit risk as at March 31, 2026 and March 31, 2025 is the
carrying value of each class of financial assets.

ii. Liquidity risk

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.

iii. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may result
from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market
changes.The Company's exposure to market risk is primarily on account of foreign currency exchange
rate risk and interest rate risk.

a) Foreign currency risk:

The fluctuation in foreign currency exchange rates may have potential impact on the statement of
profit or loss, where any transaction references more than one currency or where assets / liabilities
are denominated in a currency other than the functional currency of the Company. The Company
is subject to foreign exchange risk primarily due to its foreign currency revenues, expenses and
borrowings. Considering the countries and economic environment in which the Company operates,
its operations are subject to risks arising from fluctuations in exchange rates in those countries.
The risks primarily relate to fluctuations in US Dollar, Euro and GBP against the functional currency
of the Company. The Company, as per its risk management policy, uses derivative instruments
primarily to hedge foreign exchange. The Company has a treasury team which evaluates the
impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks
and advises the Management of any material adverse effect on the Company. It hedges a part of
these risks by using derivative financial instruments in line with its risk management policies.The
information on foreign exchange risk from derivative instruments and non derivative instruments
is as follows:

If interest rates had been 0.5% higher/lower and all other variables were held constant, the Company's Profit
for the year ended March 31, 2026 would decrease/increase by ' 64.93, (March 31, 2025: ' 226.3). Equity
net of tax is ' 49.5

(March 31,2025'167.6).This is mainly attributable to the Company's exposure to interest rates on its variable
rate borrowings.

c) Commodity risk:

Exposure to market risk with respect to commodity prices primarily arises from the Company's purchase of
active pharmaceutical ingredients and other raw material components for its products.These are commodity
products, whose prices may fluctuate significantly over short periods of time. The prices of the Company's
raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used
in the Company's business are generally more volatile. Cost of raw materials forms the largest portion of the
Company's cost of revenues. Commodity price risk exposure is evaluated and managed through operating
procedures and sourcing policies. As of March 31, 2026, the Company has not entered into any derivative
contracts to hedge exposure to fluctuations in commodity prices.

42 The Board of Directors of Company at its meeting held on April 06, 2026 approved the transfer of domestic
branded generic pharmaceutical formulations products business on a going concern basis through a Business
Transfer Agreement("BTA") to Auropharm Limited (previously known as Auro Pharma Limited), a wholly owned
subsidiary of the Company on a going concern basis by way of a slump sale w.e.f April 01,2026 subject to certain
conditions precedent including receipt of requisite approvals.

43 On November 21,2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020, ('Labour Codes') which consolidate twenty-nine existing labour laws into a unified
framework governing employee benefits during employment and post-employment.The Labour Codes, amongst
other things introduces changes, including a uniform definition of wages and enhanced benefits relating to
leave. The Company has assessed the financial implications of these changes which has resulted in increase
in gratuity liability (arising out of past service cost) and increase in leave liability aggregating ' 173.8 million.
Considering the impact arising out of an enactment of the new legislation is an event of non-recurring nature,
the Company has presented this incremental amount under "Exceptional Items" in the Standalone Statement
of Profit and Loss for the year ended March 31, 2026. The Company continues to monitor the developments
pertaining to Labour Codes and will evaluate impact if any on the measurement of liability pertaining to employee
benefits.

44A.The Board of Directors at their meeting held on April 06, 2026, approved buyback of 5,423,728 fully paid-up
equity shares of face value of ' 1 each (representing 0.93% of the total number of equity shares of the Company)
for an aggregate value not exceeding ' 8,000.0 million (Buyback Size) (excluding transaction cost) at a maximum
buy back price of ' 1,475/- per equity share.

The buyback offer is made to all of the equity shareholders of the Company, including the promoters and
members of the promoter group of the Company (as defined under SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 2011), who hold Equity Shares as of the record date (April 17, 2026), on proportionate
basis through the tender offer route in accordance with the Companies Act, 2013, as amended, rules made
thereunder, the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended
("Buyback Regulations") and other applicable laws.

Pursuant to the buyback offer, 5,423,728 equity shares were accepted and consideration of ' 8,000.0 million was
paid to eligible shareholders on May 07, 2026.

44B.The Board of Directors, at its meeting held on July 18, 2024 approved a proposal to buyback 5,136,986 fully
paid-up equity shares amounting to ' 7,500.0 million [Buyback Size, excluding transaction costs and applicable
taxes] at a price of ' 1,460 per share from the eligible equity shareholders. The buyback was offered to all
eligible equity shareholders including the promoters and promoter group of the Company on proportionate
basis through the "Tender offer" route in accordance with Securities and Exchange Board of India [Buyback of
Securities] Regulations, 2018, as amended and other applicable laws. The Buyback period was from July 18,
2024 to August 28, 2024. The Company had bought back and extinguished 5,136,986 equity shares, comprising
of 0.88% of pre-buyback paid up equity share capital of the Company. The buyback resulted in a cash outflow
of ' 9,302.4 million [including applicable taxes and transaction costs]. The Company has utilized its Securities
Premium and General Reserve for Buyback of shares. In accordance with Section 69 of the Companies Act, 2013,
the Company has credited "Capital Redemption Reserve" with an amount of to ' 5.1 million, being amount
equivalent to the face value of the Equity Shares bought back as an appropriation from General Reserve.

51 NOTE ON AUDIT TRAIL

The company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions
recorded in the software. Further, there are no instance of audit trail feature being tampered with. Additionally,
the audit trail has been preserved as per the statutory requirements for record retention.

52 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013.
Other Statutory Information:

(i) No proceedings have been initiated on or are pending against the Company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder

(ii) The Company is not declared a wilful defaulter by any bank or financial Institution or other lender.

(iii) There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of accounts

(iv) The Company has no transaction with the companies struck off under the Companies Act, 2013 or
Companies Act, 1956.

(v) 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 beneficiary) or

b) provide any guarantee, security or the like to or on behalf of ultimate beneficiaries

(vii) There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the
statutory period.

(viii) All quarterly returns or statements of current assets are filed by the Company with banks or financial
institutions are in agreement with the books of account.

(ix) The loan has been utilised for the purpose for which it was obtained and no short term funds have been
used for long term purpose.

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

(xi) The Company has not entered into any scheme of arrangements other than disclosed in financial statements,
which has an accounting impact on current or previous year.

(xii) The Company has complied with the number of layers prescribed under the Companies Act, 2013, read
with the Companies (Restriction on number of layers) Rules, 2017