(m) Provisions

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.

(n) Retirement and other employee benefits

Retirement benefit in the form of provident fund is a
defined contribution scheme. The Company has no
obligation, other than the contribution payable to the
provident fund. The Company recognises contribution
payable to the provident fund scheme as an expense,

when an employee renders the related service. If
the contribution payable to the scheme for service
received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognised as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for services
received before the balance sheet date, then excess
is recognised as an asset to the extent that the pre¬
payment will lead to, for example, a reduction in future
payment or a cash refund.

The Company operates a defined benefit gratuity
plan in India, which requires contributions to be made
to a separately administered fund by a third party.

The cost of providing benefits under the defined
benefit plan is determined based on projected unit
credit method.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets
(excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately
in the balance sheet with a corresponding debit or
credit to retained earnings through OCI in the period in
which they occur. Remeasurements are not reclassified
to Statement of Profit or Loss in subsequent periods.

Past service costs are recognised in profit or loss on the
earlier of:

• The date of the plan amendment or
curtailment, and

• The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the
net defined benefit obligation as an expense in the
statement of profit and loss:

• Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income

The Company treats accumulated leaves which
are to be settled after 12 months as a long-term
employee benefit and accumulated leaves which
are to be settled in the next 12 months as a short¬
term employee benefit for measurement purposes.
Such accumulated leaves are provided for based on
an actuarial valuation using the projected unit credit
method at the year-end. Actuarial gains/losses are

immediately taken to the statement of profit and loss
and are not deferred.

(o) Share-based payments

Employees of the Company receive remuneration
in the form of share-based payments, whereby
employees render services as consideration for
equity instruments.

Equity-settled transactions

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using Black Scholes valuation model.

That cost is recognised, together with a corresponding
increase in share-based payment reserves in equity,
over the period in which the performance and/or
service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting period has expired and the Company's
best estimate of the number of equity instruments
that will ultimately vest. The statement of profit and
loss expense or credit for a period represents the
movement in cumulative expense recognised as at the
beginning and end of that period and is recognised in
employee benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part of
the Company's best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the grant
date fair value.

The dilutive effect of outstanding options is reflected
as additional share dilution in the computation of
diluted earnings per share.

(p) 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 assets

Initial 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. However, trade receivables that do not contain
a siginficant financing component are measured at
transaction price. 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

For purposes of subsequent measurement, a 'debt
instrument' is measured at the amortised cost if both
the following conditions are met:

(a) The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

(b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI)
on the principal amount outstanding.

After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate (EIR) method.
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 in
finance income in the profit or loss. This category
generally applies to trade and other receivables.
For more information on receivables, refer to
Note 9.

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:

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

b) the Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under a
'pass-through' arrangement; and either

i. the Company has transferred substantially
all the risks and rewards of the asset, or

ii. the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset,

nor transferred control of the asset, the Company
continues to recognise the transferred asset to the
extent of the Company's continuing involvement. In
that case, the Company also recognises an associated
liability. The transferred asset and the associated
liability are measured on a basis that reflects the rights
and obligations that the Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

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

a) Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans,
deposits and bank balances.

b) Trade receivables that result from transactions
that are within the scope of Ind AS 115.

The Company follows 'simplified approach' for
recognition of impairment loss. 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
that 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.

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 effective interest rate. When estimating
the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument
(including prepayment, extension 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

- 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. On that basis, the Company
estimates the following provision matrix at the
reporting date:

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or
loss (“FVTPL”), 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 as 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 recognised in OCI. These gains/
loss are not subsequently transferred to Statement of
Profit or 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 or Loss.

Loans and borrowings

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.

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 or 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 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 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.

(q) Investments in subsidiaries

In respect of equity investments, the entity prepares
separate financial statements and account for its
investments in subsidiaries at cost, net of impairment
if any.

(r) Derivative instruments and hedge accounting

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. Any gains or losses arising from changes in
the fair value of derivatives are taken directly to profit
or loss.

Changes in the fair value of derivative contracts that
economically hedge monetary assets and liabilities in
foreign currencies, and for which no hedge accounting
is applied, are recognised in the statement of profit
and loss. The changes in fair value of such derivative
contracts, as well as the foreign exchange gains and
losses relating to the monetary items, are recognised
in the Statement of Profit and Loss.

(s) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise 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.

(t) Research and Development

Revenue expenditure on research and development is
charged to revenue in the period in which it is incurred.
Capital expenditure on research and development
is added to property, plant and equipment and
depreciated in accordance with the policies of
the Company.

(u) Measurement of EBITDA

The Company presents EBITDA in the statement of
profit or loss, which is neither specifically required by
Ind AS 1 nor defined under Ind AS. Ind AS complaint
Schedule III allows companies to present line items,
sub-line items and sub-totals shall be presented as an
addition or substitution on the face of the financial
statements when such presentation is relevant to an
understanding of the company's financial position
or performance or to cater to industry/sector-
specific disclosure requirements or when required for
compliance with the amendments to the Companies
Act or under the Indian Accounting Standards.

Accordingly, the Company has elected to present
EBITDA as a separate line item on the face of the
Statement of Profit and Loss and does not include
depreciation and amortisation expense, finance
income, finance costs, share of profit/ loss from
associate and tax expense in the measurement
of EBITDA.

(v) New standards and interpretations not yet adopted

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.

Notes:

i) Pursuant to the joint venture agreement entered into by the Company with KRKA Pharma Private Limited (“KRKA”), Capital
contribution amounting to C 105.35 have been made into KRKA in terms of the aforesaid agreement during the year for 49% stake
in two tranches, C 22.05 and C 83.30 respectively. The Company has accounted for the investment in KRKA as joint venture w.e.f.
October 03, 2024.

ii) During the year, Laurus Bio Private Limited (“Laurus Bio”) entered into definitive agreement with Eight Roads Ventures and F-Prime
Capital (“Investors”), Pursuant to this agreement Investors have together invested C 120 crores into Laurus Bio. Accordingly, the
Company's stake in Laurus Bio as on March 31,2025 is 76.32% (as on March 31,2024: 91.14%).

Nature and purpose of reserves
Capital reserve:

Represents capital reserve balances of acquired entities which are transferred to the Company upon merger.

Securities premium:

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

Share based payments reserve:

The fair value of the equity-settled share based payment transactions with employees is recognised in statement of profit and loss with
corresponding credit to Share based payments reserve. This will be utilised for allotment of equity shares against outstanding employee
stock options.

Retained earnings:

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distribution to share holders.

Re-measurement of the net defined benefit plans:

Re-measurement of net defined benefit plan reserve comprises the cumulative net gains/losses on actuarial valuation of post employee
benefit obligations.(Refer note 28)

28. The employee benefit schemes are as under:

i) Providend fund:

All employees of the Company receive benefits under the Provident Fund which is a defined benefit plan wherein the Company
provides the guarantee of a specified return on contribution. The contribution is made both by the employee and the Company
equal to 12% of the employees' salary.

ii) Superannuation fund:

The Company has a defined contribution scheme to provide pension to its eligible employees. The company has established a
trust to administer its obligation for payment of pension to the employees. The Company makes monthly contributions equal to a
specified percentage of the covered employees' salary. These contributions are administered by Company's own Trust which has
subscribed to "CapAssure Gold Policy" of SBI Life Insurance Company Limited. The Company's monthly contributions are charged
to the Statement of Profit and Loss.

iii) 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.

iv) Gratuity

Defined Benefit Plans

The Company has a defined benefit gratuity plan and governed by Payment of Gratuity Act, 1972. Every employee who has
completed five years or more of service is entitled to a gratuity on departure at 15 days salary for each completed year of service.
The Company has established a trust to administer its obligation for payment of gratuity to employees. The trust in turn contributes
to a scheme administered by the SBI Life Insurance Company Limited. The following tables summarise net benefit expenses
recognised in the Statement of Profit and Loss, the status of funding and the amount recognised in the Balance sheet for the
gratuity plan:

Risk Management:

Investment risk - The probability or likelihood of occurrence of losses related to the expected return on any particular investment.

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 the liability.

Longevity risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality
of plan participants both during and after 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 is calculated with reference to the future salaries of participants under the
plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities.

29. Share based payments
ESOP 2016 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2016 for issue
of stock options to eligible employees of the Company effective from June 09, 2016. According to the Scheme, the options granted
vest within a period of four years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as
the employee continues to be in the employment of the Company as on the date of vesting. Subject to an employee's continued
employment with the Company, options can be exercised any time on or after the date of vesting of options as specified in the
respective grants under the Scheme.

ESOP 2018 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2018 for issue
of stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of four
years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues
to be in the employment of the Company as on the date of vesting. Subject to an employee's continued employment with the
Company, options can be exercised any time on or after the date of vesting of options as specified in the respective grants under
the Scheme.

ESOP 2021 Scheme

The board of directors/ compensation committee has approved the Laurus Employees Stock Option Scheme (ESOP) 2021 for issue
of stock options to eligible employees of the Company. According to the Scheme, the options granted vest within a period of five
years, subject to the terms and conditions specified in the scheme. Options granted shall vest so long as the employee continues
to be in the employment of the Company as on the date of vesting. Subject to an employee's continued employment with the
Company, options can be exercised any time on or after the date of vesting of options as specified in the respective grants under
the Scheme.

(i) Share-based payments

Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model,
which is dependent on the terms and conditions of the grant. This estimation requires determination of the most appropriate
inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making
assumptions about them. The Black Scholes valuation model has been used by the Management for share-based payment
transactions. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed
in Note 29.

(ii) Defined employee benefit plans (Gratuity)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the
post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates for the respective countries. Further details about gratuity obligations are given in Note 28.

(iii) Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow
('DCF') model. The inputs to these models are taken from observable markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity
risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial
instruments. Refer note 37 and 38 for further disclosures.

(iv) Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates arrived at based on the
useful lives and residual values of all its property, plant and equipment estimated by the management. The management
believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant
and equipment, though these rates in certain cases are different from lives prescribed under Schedule II of the Companies
Act, 2013.

(v) Impairment of investments

The Company reviews its carrying value of investments annually, or more frequently when there is an indication for
impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

(vi) Recognition and measurement of other provisions:

The recognition and measurement of other provisions is based on the assessment of the probability of an outflow of
resources, and on past experience and circumstances known at the closing date. The actual outflow of resources at a future
date may therefore, vary from the amount included in other provisions.

(vii) Taxes - Refer Note (2(f))

(viii) Impairment of non-financial assets - Refer Note (2(l))

(ix) Inventories - Refer Note (2(k))

(x) Leases: whether an arrangement contains a lease; lease classification- Refer Note (2(i))

(xi) Contingent liabilities: Measurement and likelihood of occurrence of provisions and contingencies.- Refer Note (39 (c))

(xii) Revenue and receivables - Refer Note (2 (d) and 2(p))

37. Financial risk management objectives and policies
Financial risk management framework

The Company is exposed primarily to credit risk, liquidity risk and market risk (fluctuations in foreign currency exchange rates and
interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the unpredictability of
the financial environment and seeks to mitigate potential adverse effects on the financial performance of the Company.

A 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 creditworthiness
as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness 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, bank deposits and other financial assets. None of the financial instruments of the
Company result in material concentration of credit risk, except for trade receivables.

Trade receivables:

The customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit
risk management. Credit quality of a customer is assessed based on the individual credit limits are defined in accordance with
this assessment and outstanding customer receivables are regularly monitored. Of the trade receivables balance, C 737.22 in
aggregate (as at March 31, 2024 C 538.10) is due from the Company's customers individually representing more than 5 %
of the total trade receivables balance and accounted for approximately 36.2% (March 31, 2024: 33%) of all the receivables
outstanding. The Company' receivables turnover is quick and historically, there was no significant defaults on account of
those customer in the past. Ind AS requires an entity to recognise in profit or loss, the amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised
in accordance with Ind AS 109. The Company assesses at each date of statements of financial position whether a financial
asset or a group of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month
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 adjusted for forward-looking information.

Before accepting any new customer, the Company uses an internal credit scoring system to assess the potential customer's
credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed on periodic basis.
The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the
provision matrix.

Exposure to credit risk:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
C 2,035.07 (March 2024: C 1,640.50), being the total of the carrying amount of balances with trade receivables.

Loans are given to subsidiaries for the purpose of working capital and other business requirements.

Other than trade receivables and loans, the Company has no significant class of financial assets that is past due but
not impaired.

B Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. 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.

Excludes lease liabilities. Refer note no. 39A for contractual cash flows relating leases
C 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.

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 change in
market interest rates. In order to optimise the Company's position with regards to interest income and interest expenses and
to manage the interest rate risk, treasury performs a comprehensive corporate interest risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.

Foreign currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other
comprehensive income and equity, where any transaction references more than one currency or where assets / liabilities
are denominated in a currency other than the functional currency of the respective entities. 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 against the functional currencies
of the Company. The Company, as per its risk management policy, uses derivative instruments primarily to hedge foreign
exchange. The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange
rate risks. It hedges a part of these risks by using derivative financial instruments in line with its risk management policies. The
information on derivative instruments is as follows:

a) Forward contract (Derivatives):

Forward contract outstanding as at Balance Sheet date:

March 31,2025 Sell US $ 2,09,65,652.76 Designated as fair value hedge - receivables

March 31,2025 Sell ZAR 5,02,76,424 Designated as fair value hedge - receivables

March 31,2025 Buy US $ 2,35,50,768.28 Designated as fair value hedge - Payables and Secured loans

March 31,2024 Sell US $ 10,000,000 Designated as fair value hedge - receivables

March 31,2024 Sell ZAR 2,74,87,587.24 Designated as fair value hedge - receivables

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in
meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in
the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,2025.

39. Commitments and Contingencies
A. Leases

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration.

Operating lease commitments - Company as lessee

The Company's lease asset classes primarily consist of leases for land. The Company recognises right-of-use asset representing its
right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured
at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs
to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it
is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line
method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested
for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date
of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined.
If that rate cannot be readily determined, the Company uses incremental borrowing rate.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease
term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these
leases are recognised as an expense on a straight-line basis over the lease term.

41. Other statutory information

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 period.

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

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

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

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

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

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

viii) The Company doesn't 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.

For and on behalf of the Board of Directors
LAURUS LABS LIMITED

Dr. Satyanarayana Chava V.V. Ravi Kumar

Executive Director & Chief Executive Director & Chief

Executive Officer Financial Officer

DIN: 00211921 DIN: 01424180

G.Venkateswar Reddy

Place: Hyderabad Company Secretary

Date: April 24, 2025 Membership No. F7016