Investment in Equity Instrument- wholly owned Subsidiary company

1. Investment in Neoanthem Life Sciences Private Limited, 375,150,000 equity shares of Rs. 10 each (FY2025: 100,150,000 equity shares of Rs.

10/- each), constitutes 100% of the capital of that company. The investment also includes Rs.5.19 Million representing Share Based Payment Expenses recognised in respect of options granted to employees of Subsidiary company, accounted as deemed investment in accordance with Ind AS 102.

Investment in Equity Instrument - Others

1. Investment in Four EF Renewables Private Limited, 205,338 equity shares of Rs. 100/- each (FY2025:2,05,338 equity shares of Rs. 100/-each)

2. Investment in Ampyr Renewable Energy Resources Eleven private limited, 115,321 equity shares of Rs. 10/- each (FY2025: 1,669,668 equity shares of Rs.10/-each)

3. Investment in Isharays Energy One private limited, 2,000,000 equity shares of Rs. 10/- each (FY2025: 2,000,000 equity shares of Rs.10/-each)

4. Investment in Suryaurja One Private Limited 3,759,000 equity shares of Rs. 10/- each (FY2025: 3,759,000 equity shares of Rs.10/-each)

Investment in Preference Shares - Others

1. Investment in Four EF Renewables Private Limited, 410,677 Preference shares of Rs. 100/- each (FY2025: 4,10,677 preference shares of Rs.100/-each)

2. Investment in Ampyr Renewable Energy Resources Eleven Pvt Ltd, 3,339,337 Preference shares of Rs. 10 each (FY2025: 3,339,337 Preference shares of Rs.10 each)

15.1 The Company has only equity shares having a face value of Rs.2/- each.

15.2 Terms/ Rights attached to equity shares

Each holder of the equity share, as reflected in the records of the Company as of the date of the shareholders meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholders meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of amounts payable to preference shareholders & any statutory liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company had allotted 526,603,200 equity shares of Rs. 2/- each fully paid up as bonus shares on November 28, 2022 in the ratio of 12:1 (Twelve equity shares of 'Rs. 2/-each for every one equity share of 'Rs. 2/- each held in the Company as on the record date i.e. 31^st October 2022) by capitalisation of capital redemption reserve and general reserves of the company.

The Board of Directors at its meeting held on December 11, 2023 had approved the buy-back of 11,409,700 fully paid up equity shares of face value of Rs.2/- each from the equity shareholders of the Company, at a price of Rs. 130.55/- per equity share (Maximum Buy-Back price)and such aggregate amount not exceeding Rs.1,489,536,335/- (Maximum Buy-back Size, excluding transaction costs and taxes thereon). Buy Back is undertaken through the offer letter on such terms and conditions as the board may deems fit.

During the year, the Company completed its Initial Public Offering through an Offer for Sale of 59,575,319 equity shares by existing shareholders. As the Offer for Sale did not involve any fresh issue of equity shares by the Company, there has been no change in the issued, subscribed and paid-up share capital of the Company pursuant to the listing.

Nature and purpose of reserves

i) Capital Redemption Reserve

The reserve was created on buy-back of equity shares out of free reserves, in accordance with Section 69 of the Companies Act, 2013.

ii) General Reserve

Represents amounts transferred from retained earnings from time to time for appropriation purposes

iii) Share Premium Reserve

Represents the premium received over and above the face value on issue of equity shares

iv) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders

v) Share Based Payment

Relates to share options granted by the Company to its employees under its Employee Share Option Plan 2024

vi) Components of Other Comprehensive Income

Represents cumulative actuarial gains and losses on remeasurement of defined benefit plans

Terms of Security

17.1 The term loan from Biotechnology Industry Research Assistance Council (BIRAC) is secured by a charge on the equipment and machinery procured using the loan proceeds, and carries interest at a concessional rate of 2.00% per annum.

17.2 Cash credit and other fund-based and non-fund-based facilities from Citibank & HDFC Bank are secured by a first charge on a pari passu basis over the Company's current assets (inventories and trade receivables) and a second charge on a pari passu basis over movable Property, Plant & Equipment, supported by a demand promissory note and letter of continuity. These facilities are repayable on demand and carry interest in the range of 8.60% to 9.02% per annum, subject to periodic reset.

17.3 The term loan from Citi Bank is secured by an exclusive charge over the Company's movable Property, Plant & Equipment and carries interest linked to the [1-month T-bill rate] plus 50 basis points.

32. Research and development expenditure

Expenditure on research activities are recognized as expenses and charged to Statement of profit and loss. Development costs of products are also charged to the Statement of profit and loss unless a product's technological feasibility has been established and the ability of the asset to generate future economic benefits, in such case expenditure is capitalized. The amount capitalized comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilized for research and development are capitalized and depreciated in accordance with the policies stated for Tangible Assets and Intangible Assets. During the year, the below mentioned expenditure is incurred towards research and development:

(b) Gratuity

The Company provides its employees with benefits under a defined benefit plan referred to as the Gratuity Plan, administered through Anthem Bioscience Employees Group Gratuity Trust. The Gratuity Plan entitles an employee who has rendered a minimum specified period of continuous service to receive a lump-sum payment at retirement, death, incapacitation or termination of employment, based on the last drawn salary and years of service, in accordance with the Payment of Gratuity Act, 1972. This defined benefit plan exposes the Company to actuarial risks such as longevity risk, interest rate risk, salary escalation risk and market risk on plan assets. The liability towards gratuity is provided for on the basis of independent actuarial valuation using projected unit credit method.

(c) Compensated Absences- Unfunded Obligation

The Company provides for compensated absences to its employees. Employees can carry forward a portion of unutilised accumulated leave and use it in future service periods or receive cash at retirement or termination of employment. The Company determines this expense based on actuarial valuation of the present value of the obligation using the projected unit credit method.

35. Exceptional items

On November 21, 2025, the Government of India notified four new Labour Codes - 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 - consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules and FAQs in this regard. The Company has assessed and made a provision, as an Exceptional Item consistent with the guidance provided by the Institute of Chartered Accountants of India, for the year ended March 31, 2026.

For the year ended 31 March 2026, the net expense recognized in "Exceptional Item" amounts to Rs. 240.13 million in the Standalone financial results.

In case of any further clarification from the Government on other aspects of the Labour Codes, the Company will evaluate and account for differential impact, if any, in subsequent periods.

Carrying amounts of cash and cash equivalents and bank balances, trade receivables, loans and trade payables approximate the fair value due to their nature. Carrying amounts of other financial assets and other financial liabilities which are subsequently measured at amortised cost also approximate the fair value due to their nature in each of the periods presented. Fair value measurement of lease liabilities is not required.

38. Financial Risk Management

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company when necessary uses derivative financial instruments to mitigate foreign exchange related risk exposures. It is the Company’s policy that no trading in derivative for speculative purposes may be undertaken. In addition, a portion of the Company’s receivables are naturally hedged on account of some portion of the raw material and consumables procurement being imports, and denominated in the U.S. Dollar.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(a) Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks/ financial institutions and other financial instruments. The Company has no significant concentration of credit risk with any counterparty

(b) Trade and other receivables:

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

(c) Investments:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors.

(d) Liquidity risk:

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilized credit limits with banks.

The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

(e) Foreign currency risk:

The Company’s exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. Dollars). A significant portion of The Company’s revenues are in US Dollars while a significant portion of its costs are in Indian Rupees. As a result, if the value of the Indian Rupee appreciates relative to these foreign currencies, The Company’s revenues measured in Rupees may decrease. The exchange rate between the Indian Rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has an internal committee which meets on a periodic basis to formulate the strategy for foreign currency risk management. When necessary, the Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and trade receivables.

As at March 31,2026, every 1% increase /decrease in the respective foreign currencies compared to functional currency of the company would result in increase/decrease in the companys's profit before taxes for the year by 36.70 millions

As at March 31,2025, every 1% increase /decrease in the respective foreign currencies compared to functional currency of the company would result in increase/decrease in the companys's profit before taxes for the year by 27.62 millions

(f) Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to The Company’s debt obligations with floating interest rates and investments. The Company’s borrowings and investments are primarily short-term, which do not expose it to significant interest rate risk.

The Company is predominantly equity financed which is evident from the capital structure table. Further, The Company has always been a net cash Group with cash and bank balances along with investment which is predominantly investment in liquid and short term mutual funds being far in excess of debt.

41. Segment information :

Segments are identified in line with Indian Accounting Standard (Ind AS) 108 "Operating Segments", taking into consideration the internal organization and business activities in which it engages and the economic environments in which it operates and separate financial information availability. The Company's Chief Operating Decision Maker ("CODM") has been identified as the Board of Directors. The CODM reviews the Company's performance and allocates resources based on the analysis of revenue from the following two reportable segments, identified in accordance with Ind AS 108 "Operating Segments":

Valuation Process

The fair value of stock options granted under the Company's Plan has been determined using the Black-Scholes option pricing model, based on a valuation report obtained from an independent valuer at the time of grant, when the Company's shares were not listed on any stock exchange. The valuation report provides a single fair value for the grant as a whole. In accordance with Ind AS 102, the Company recognises employee compensation cost on a graded vesting basis, with the related expense for each tranche recognised over its respective vesting period; the single fair value from the valuation report has been applied uniformly across all tranches for this purpose.

47. Event occuring after balance sheet date

The Board of Directors of the Company in their meeting held on 19^th May 2026, have propsed a dividend of Rs.2.00 per equity share for the financial year ended March 31, 2026, subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in cash outflow of approximately INR 1,126 Million.

48. Other Disclosures

During the year ended 31 March 2026, the Company has completed its Initial Public Offer of equity shares of face value of Rs. 2 each at a issue price of Rs. 570 per share (including premium of Rs. 568 per share) comprising of Offer for Sale of 59,575,319 equity shares by selling share holders aggregating to Rs.33,950 million. The equity shares of the Company got listed on National Stock Exchange of India limited and Bombay Stock Exchange on July 21, 2025.

49. Other Statutory Disclosures

(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.

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

(iv) The Company does not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(vii) The Company has not 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.

(viii) The Company has not been declared as Willfull Defaulter by any Bank or Financial Institutions or any other lender.

(ix) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act r.w Companies (Restriction on

number of layers) Rules, 2017.

(x) For the financial year ended 31 March 2026, the Company's accounting software has an audit trail functionality. This feature remained operational throughout the year, capturing a chronological record of all relevant transactions processed within the software. The audit trail has not been tampered with during the year. The audit trail logs have been preserved as per the statutory requirements for record retention.