b) Terms/rights attached to equity shares:

(i) The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. Any fresh equity shares shall rank pari-passu with the existing shares.

(ii) In 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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

I) Secured borrowings Term Loan From NBFCs

a) Term loan from Aditya Birla Finance Limited. Amounting to Rs. NIL (PY : Rs.2,975.28 lakhs) . It carries an interest rate in the range of 11.50% to 13.65% p.a. The loan was repayable in 120 monthly installment starting from 15th October, 2019. The loan has been fully repaid in current year.

b) Term loan from Aditya Birla Finance Ltd. Amounting to Rs. NIL (PY : Rs. 426.10 lakhs) It carries an interest rate in the range of 11.50% to 13.65% p.a. The loan was repayable in 36 monthly installment starting from 5th November, 2021. The loan has been fully repaid in current year.

c) Term loan from Aditya Birla Finance Ltd. Amounting to Rs. NIL (PY : Rs. 365.20 lakhs). It carries an interest rate in the range of 11.50% to 13.65% p.a. The loan was repayable in 60 monthly including 24 months moratorium starting from 5th September, 2024.The loan has been fully repaid in current year.

The above loan from Aditya Birla are secured by

The above loan is secured against hypothecation of current assets, plant & machinery, factory land and building situated at village Poicha (Rania) Taluka Salvi Dist Vadodra Minimum 26% of shares of Lactose (India) Ltd held by promoters has been pledged.

Term Loan From Banks :

a) Term loan from Bank of Baroda amounting to Rs. 2,571.69 lakhs (P.Y. NIL) . It carries an interest rate in the range of 11.4% p.a. The loan is repayable in 78 monthly installment starting from 10th May, 2023

b) Term loan from Bank of Baroda (ECGLS I) amounting to Rs. 230.21 lakhs (PY. NIL) . It carries an interest rate in the range of 9.25% p.a. The loan is repayable in 24 monthly installment starting from 10th May, 2023

c) Term loan from Bank of Baroda (ECGLS II) amounting to Rs. 365 lakhs (PY. NIL). It carries an interest rate in the range of 9.25% p.a. The loan is repayable in 36 monthly installment starting from 30th September, 2024

The above loan from Bank of Baroda are secured by

The above loan is secured against hypothecation of entire Machineries, electrical installations, furniture & fixtures, office equipment's and other movable fixed assets of the Company, situated at the above mentioned factories, present & future.

Vehicle loans From Bank

a) Vehicle loans from HDFC Bank amounting to Rs. 12.48 lakhs (PY : Rs. 29.36 lakhs) are secured against respective vehicles. It carries interest rate of 8.40% to 10.00% p.a. and are repayable in 48 to 60 equal monthly installments.

b) Vehicle loan from HDFC Bank amounting to Rs.13.55 lakhs (PY : Rs.18.69 lakhs) is secured against respective vehicles. It carries interest rate of 7.30% p.a. and is repayable in 60 equal monthly installment.

c) Vehicle loan from Axis Bank amounting to Rs.0.34 lakhs (PY : Rs.2.50 lakhs) is secured against respective vehicles. It carries interest rate of 9.51% p.a. and is repayable in 60 equal monthly installment.

d) Vehicle loan from Kotak Bank amounting to Rs.10 lakhs (PY : Rs. 13.17 lakhs) is secured against respective vehicles. It carries interest rate of 7.15% p.a. and is repayable in 60 equal monthly installment.

e) Vehicle loan from HDFC Bank amounting to Rs.15.06 lakhs (PY : Rs. NIL) is secured against respective vehicle. It carries interest rate of 8.80% p.a. and is repayable in 60 equal monthly installment.

The Company has received the following government grants during the year:

(a) Incentive against Capital Investment The Company has received a capital subsidy of Rs.35 Lakhs from the state government towards the investment made in the Equipment. As per Ind AS 20 'Accounting for Government Grants and Disclosure of Government Assistance', the grant received is recognized as deferred income and is being amortized over the useful life of the related asset.

1) Working Capital From Banks and Financial institutions.:

a) Working Capital loan from Aditya Birla Finance Ltd amounting to Rs.NIL (P.Y. 49.15 lakhs) . The said loan was repayable on demand and carries interest in the range of 11.50% to 13.65%.The loan has been fully repaid in current year.

b) Working Capital loan from Bank of Baroda amounting to Rs.626.45 laks (P.Y. NIL) is secured by 1st Hypothecation charge on Stocks, Receivable . It carries interest @11.40% (BRLLR 9.15% SP 0.25% 2.00% i.e. 11.40% pa.

2) Unsecured borrowings from Directors

Short term loans from Directors amounting to Rs.NIL (PY : Rs.2.98 lakhs ) are unsecured and chargable to interest @13%. The loan is repayable on demand.

The following is the summary of the differences between Current Assets declared with the Bank and as per Audited financial statements:

Note: This information, as required to be disclosed under the MSMED Act, has been determined to the extent such parties have been identified on the basis of information available with the Company.

Trade payables are normally non-interest bearing and settled as per the payment terms stated in the contract and Mutual Agreement.

Note 35 : Earnings per equity share (EPS)

The amount considered in ascertaining the Company's earnings per share constitutes the net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Note (a): The Company has obtained Advance Licence for purchase of raw material on zero percent custom duty. Under the licence the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty. In case of advance licence, material must be exported within 18 months from the date on which goods were cleared from Customs under advance licence. Export obligation pending is 2189.01 MT (PY 1613.78MT) which needs to be completed under advance License. If the export obligation is not fulfilled, then the duty component will be Rs 612.61 lacs (PY Rs 433.47 lacs)

(b) Capital and other commitments :- Nil

Note 38 : Disclosure relating to employee benefits as per Ind AS 19 ‘Employee Benefits'

A Defined benefit obligations - Gratuity (unfunded)

The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member's length of service and salary at retirement age.

Note 39 : Segment Reporting as required under Indian Accounting Standard 108, “Operating Segments” :

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacture and trading of Pharmaceutical Products, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments”.

Further, from one external customers of the company has revenue of Rs. 1514.95 Lakhs ( P Y Rs. 1939.54 Lakhs from two customers) more than 10% of the total revenue from operations.

The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties,other than in a forced or liquidation sale. The management assessed that fair value of cash and cash equivalents, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

(ii) Fair value hierarchy

Fair value hierarchy explains the judgement and estimates made in determining the fair values of the financial instruments that are -

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.

If one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3.

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

i. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

Cash flow sensitivity analysis for variable-rate instruments

The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates :

Other Price risk

The company is not exposed to the other price risk b) Foreign currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company's business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.

Trade and other receivables from customers

Credit risk in respect of trade and other receivables is managed through credit approvals, establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which the entity operates. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the Company's historical experience for customers.

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks of Rs.153.00 lakhs and Rs. 58.10 lakhs as at 31 March 2024, 31 March 2023 respectively. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.Also, Company invests its short term surplus funds in bank fixed deposit, which carry no / low mark to market risks for short duration therefore does not expose the Company to credit risk.

iii. 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.

Liquidity risk is managed by Company through effective fund management of the Company's short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other 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 the reporting date. The amounts are gross and undiscounted.

1 Total Debt = Borrowings Lease Liabilities

2 Earnings available for debt service = Net profit before tax finance costs depreciation & amortisation expense loss on sale of fixed assets

3 Debt Service = Interest & lease payments principal payments

4 Cost of Goods Sold = Cost of materials consumed Purchases of stock-in-trade Changes In inventories of finished goods (incl. stock-in-trade) and work-in-progress

5 Working Capital = Total Current Assets - Total Current Liabilities

6 Capital Employed = Tangible Networth6 Total debt Deferred Tax liability

7 Tangible Networth = Total assets - Total liabilities - Intangible assets

8 Average Investment = Total Equity Note 44 : Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

To maintain or adjust the capital structure, the Company usually turns to reputed banks and other financial institutions for funds. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.

The Provisions for Corporate Social Responsibility as per Section 135 of Companies act 2013 are not applicable to the company.

Note 46 : Disclosures with regards to section 186 of the Companies Act, 2013

The Company has not made any investments in, provided any guarantee or security or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties.

Note 47 : Additional Regulatory Information Required By Schedule iii To The Companies Act, 2013

1. The Company does not have any benami property held in its name. 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.

2. The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

3. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

4. Utilisation of borrowed funds and share premium

I. 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.

II. 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.

5. The Company does not have any 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.

6. The Company has not traded or invested in crypto currency or virtual currency during the year.

7. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies

beyond the statutory period.

8. The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year. Note 48 : Prior year comparatives

Previous year's figure's have been re-grouped, re-arranged & re-classified, wherever considered necessary, to confirm the current periord figures.