2.13Provisions

Provision for legal claims is recognized when the Company has a
present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are
not recognized for future operating losses.

Provisions are measured at the present value of management's
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the
risks specific to the liability. The increase in the provisions due to
the passage of time is recognized as interest expense. Provision for
litigation related obligation represents liabilities that are expected
to materialize in respect of matters in appeal.

2.14Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, bonus, ex-gratia etc. that
are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related
service are recognized in respect of employees' services up
to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Long-term employee benefit obligations

The liabilities for compensated absences are not expected
to be settled wholly within 12 months after the end of the
period in which the employees render the related service.
They are therefore measured as the present value of expected
future payments to be made in respect of services provided

by employees up to the end of the reporting period using the
projected unit credit method. The benefits are discounted using
the market yields at the end of the reporting period that have
terms approximating to the terms of the related obligations.
Remeasurements as a result of the experience adjustments and
changes in actuarial assumptions are recognized in profit or loss.
The obligations are presented as current liabilities in the
balance sheet if the entity does not have an unconditional
right to defer settlement for at least twelve months after the
reporting period, regardless of when the actual settlement is
expected to occur.

(iii) Post-employment obligations

The Company operates the following postemployment schemes:

a) Defined benefit plans-Gratuity obligations

The liability or assets recognized in the balance sheet in
respect of defined benefit gratuity plans is the present
value of the defined benefit obligations at the end of
the reporting period less the fair value of plan assets.
The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

The present value of the defined benefit obligation
denominated in INR is determined by discounting the
estimated future cash outflows by reference to market
yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the
related obligation. The benefits which are denominated
in currency other than INR, the cash flows are discounted
using market yields determined by reference to high-
quality corporate bonds that are denominated in the
currency in which the benefits will be paid, and that have
terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in
employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience
adjustments and change in actuarial assumptions are
recognized in the period in which they occur, directly
in other comprehensive income. They are included in
retained earnings in the statement of changes in equity
and in the balance sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or

curtailments are recognized immediately in profit or loss
as past service cost.

I n respect of funded post-employment defined benefit
plans, amounts due for payment within 12 months to
the fund may be treated as 'current' Regarding unfunded
post-employment benefit plans, settlement obligations
which are due within 12 months in respect of employees
who have resigned or expected to resign or are due for
retirement within the next 12 months is 'current'. The
remaining amount attributable to other employees, who
are likely to continue in the services for more than a year, is
classified as "non-current".

Normally an actuary should determine the amount of
current and non-current liability for unfunded post¬
employment benefit obligations.

b) Defined contribution plans

The Company pays provident fund contributions to
publicly administered funds as per local regulations.
The Company has no further payment obligations once
the contributions have been paid. The contributions
are accounted for as defined contribution plans and the
contributions are recognized as employee benefit expense
when they are due. Termination benefits in the nature
of voluntary retirement benefits are recognised in the
Statement of Profit and Loss as and when incurred.

2.15 Dividends:

Provision is made for the amount of any dividend declared, being
appropriately authorized and no longer at the discretion of the
entity, on or before the end of the reporting period but not
distributed at the end of the reporting period. Proposed dividend
is recognised as a liability in the period in which it is declared by
the Company, usually when approved by shareholders in a general
meeting, or paid

2.16 Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit attributable to owners of the Company

• By the weighted average number of equity shares
outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the

determination of basic earnings per share to take into account:

• the after-income tax effect of interest and other financing
costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity
shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

2.17Contingent liabilities &Commitments

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle
the obligation.

- a present obligation arising from past events when no reliable
estimate possible.

- a possible obligation arising from past events unless the
probability of outflow of resources is remote.

Commitments include the amount of purchase order (net of
advances) issued to parties for completion of assets.

2.18 Critical estimates and Judgements:

The preparation of financial statements requires the use of
accounting estimates which, by definition, will seldom equal the
actual results. Management also exercise judgement in applying
the Company's accounting policies.

Detailed information about the areas that involved a higher degree
ofjudgement or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out
to be different than those originally assessed. Detailed information
about each of these estimates and judgements is included

In relevant notes together with information about the basis of
calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

(i) Estimation of current tax expense and current tax payable -
refer Note: 31

(ii) Estimation of defined benefit obligations- refer note: 18

(iii) Allowance for uncollected accounts receivable and advances.
Trade receivables do not carry any interest and are stated at
their nominal value as reduced by appropriate allowances for
estimated irrevocable amounts. Individual trade receivables
are written off when management deems them not to be
collectible. Impairment is made on the expected credit losses,
which are the present value of the cash shortfall over the
expected life of the financial assets.

Estimates and judgements are continually evaluated. They are based
on historical experience and other factors, including expectations
of future events that may have a financial impact on the company
and that are believed to be reasonable under the circumstances.

2.19 Government grants:

Grants from the government are recognised at their fair value where
there is a reasonable assurance that the grant will be received and
the company will comply with all attached conditions.

Government grants relating to income are deferred and recognised
in the profit or loss over the period necessary to match them with
the costs that they are intended to compensate and presented
within other income.

Government grants relating to the purchase of property, plant
and equipment are included in non-current liabilities as deferred
income and are credited to profit or loss on a straight-line basis over
the expected lives of the related assets and presented within other
income

Export incentives comprise of Duty draw back and MEIS
(Merchandise Exports Incentive scheme) scrips. Export entitlements
from government authorities are recognised in the statement of
profit and loss as income or as a reduction from "Cost of materials
consumed", when there is reasonable assurance that the entity will
comply with the conditions attaching to them and the grants will be
received

2.20 Rounding of Amounts:

All amounts disclosed in the financial statements and notes have
been rounded off to the nearest Million as per the requirement of
Schedule III of the Companies Act, 2013 unless otherwise stated.

A. Loans:

Loan from Banks consists of:

(i) Loan taken from SBI for C700 mn (USD 10.1 mn)repayable in 16 instalments from October 2017 to June 2022. This loan carries an interest rate
of 16.5%. The same has been defaulted by the Company and So, the company is in negotiation with SBI for settlement.

Loan from Financial Institutions consists of:

(i) ECB loan taken from IFC for USD 12.5 million repayable in 10 instalments from June 2015 to December 2019 and Company has applied for
extenstion and its underprocess. This loan carries an interest rate of 6.02%.

All the term loans are secured by a charge on the moveable and immovable assets of the Company, present and future, with a paripassu charge.

B. Sales tax deferrment loan:

The Company has been granted an interest free sales tax deferment loan by the Government of Andhra Pradesh. This loan is unsecured.

C. FCCB's from Financial Institutions:

The Company has obtained an FCCB from IFC in June 2011 for an amount of USD 7.5 million repayable in 5 years with a coupon rate of 0.55% per
annum and an interest rate of 4.23% per annum compounded semiannually if the conversion option is not exercised. Subsequently, the due date
for payment has been extended upto 30 September 2019. The Company has applied for extenstion and its underprocess. The entire portion was
classified under "Borrowings", and there is no equity portion of the instrument.

D. Cash credits and packaging credit loans:

The Company has working capital facilities in the form of cash credits and packaging credit from State Bank of India, Indian Bank( Erst.Allahabad
Bank), Bank of Bahrain and Kuwait and Exim with interest rates varying between 14.5% to 16.5%.

During the previous year, EXIM Bank have not renewed PCFC facility and the loan was called back during the previous year. During the year, Loan
taken from EXIM Bank have been repaid under One Time Settlement and no due certificate obtained.

E. The Company has defaulted in repayment of dues to Banks and Financial institution amounting to C3751.06 million as on 31.03.2024 as per books
of Account including the interest. All the loan accounts outstanding as on 31.03.2024 are classified as NPA by the banks.

F. The company has not been declared as willful defaulter by any bank or financial institution.

34 The company doesn't have any transactions which are not recorded in books of accounts that has been surrender or disclosed for tax assessments

under Income Tax Act, 1961 during the year.

35 The Company doesn't have any transactions or relationship with struck off companies.

35.1 The company has not made any long term contracts including derivative contracts for which there were any material foreseeable losses as
on 31-03-2024

36 The Company has not advanced or loaned or invested any funds (either from borrowed funds or share premium or any other sources or kind of

funds) to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing
or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

37 The company has not received any funds from any persons or entities, including foreign entities ("Funding Parties"), with the understanding,

whether recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities identified in
any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any guarantee, security or the like on behalf
of the Ultimate Beneficiaries

38 The company has not traded or invested in crypto currency or virtual currency during the financial year.

39 The company has complied with number of layers prescribed under clause (87) of section 2 of the act read with company rules,2017

40 There are no charges or satisfaction of charges yet to be registered with ROC beyond the statutory period

41 The company has not applied for any scheme of arrangements in terms of section 230 to 237 of the companies act. .

45 Gratuity / Leave Encashment / Sick Leave

The Company provides its employees with benefits under a defined benefit plan, referred to as the "Gratuity Plan". The Gratuity Plan entitles an
employee, who has rendered at least five years of continuous service, to receive 15 days salary for each year of completed service (service of six
months and above is rounded off as one year) at the time of retirement/exit, restricted to a sum of C2,000,000.

The following tables summarize the components of net benefit expense recognised in the statement of profit or loss and the amounts recognised in
the balance sheet for the plan:

48 Earnings per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares
outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of equity shares outstanding
during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into
equity Shares.

52 Subsequent Events

There are no significant events that occurred after the balance sheet date.

53 Prior year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current year's classification.

The accompanying notes are an integral part of the standalone financial statements.

As per our report of even date attached

for SVRL & Co. for and on behalf of the Board of Directors of

Chartered Accountants Vivimed Labs Limited

ICAI Firm Registration Number: 016182S CIN: L02411KA1988PLC009465

Sd/- Sd/- Sd/-

G. Ramakrishna Santosh Varalwar Manohar Rao Varalwar

Partner Managing Director Whole-Time Director

Membership No.: 213487 DIN: 00054763 DIN: 00059815

UDIN: 24213487BKHRAH1614 Sd/-

Yugandhar Kopparthi

Place: Hyderabad Company Secretary

Date: 14-11-2024 M. No: ACS19315