R. Provisions and contingencies:

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. If the effect of the time value of
money is material, provisions are discounted using the
government securities' interest rate for the equivalent
period. Unwinding of the discount is recognised in the
Statement of Profit and Loss as a finance cost.
Provisions are reviewed at each balance sheet date and
are adjusted to reflect the current best estimate.
Provisions are not recognised for future operating
losses.

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the
company or a present obligation that arises from past
events where it is either not probable that an outflow of
resources will be required to settle or a reliable
estimate of the amount cannot be made. Information on
contingent liability is disclosed in the notes to the
financial statements. Contingent assets are not
recognised. However, when the realisation of income is
virtually certain, then the related asset is no longer a
contingent asset, but it is recognised as an asset.

S. Earning pershare:

Basic earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to
equity shareholders by the weighted average number of
equity shares outstanding during the year.

Diluted earnings per share is calculated by dividing the
net profit or loss (after tax) for the year attributable to
equity shareholders and the weighted average number
of equity shares outstanding during the year are
adjusted for the effects of all dilutive potential equity
shares.

Note 4 - Use of Significant Accounting Estimates,
Judgments and Assumptions

In the process of applying the Company's accounting
policies, management has made the following
estimates and judgements, which have significant effect
on the amounts recognised in the financial statements:

A. Depreciation and useful lives of Property, Plant and
Equipment

Property, plant and equipment are depreciated over the
estimated useful lives of the assets, after taking into
account their estimated residual value. Management
reviews the estimated useful lives and residual values of
the assets annually in order to determine the amount of
depreciation to be recorded during any reporting period.
The useful lives and residual values are based on the
Company's historical experience with similar assets
and take into account anticipated technological
changes. The depreciation for future periods is adjusted
if there are significant changes from previous
estimates.

B. Recoverability of trade receivables

Judgments are required in assessing the recoverability
of overdue trade receivables and determining whether a
provision against those receivables is required. The
Company uses a provision matrix to determine
impairment loss allowance on 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.

C. Defined Benefit plans

The cost of the defined benefit plan and other post¬
employment benefits and the present value of such
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, a defined benefit obligation is highly

sensitive to changes in these assumptions. AH
assumptions are reviewed at each reporting date.

D. Provisions:

Provisions and liabilities are recognized in the period
when it becomes probable that there will be a future
outflow of funds resulting from past operations or
events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification
of the liability require the application of judgement to
existing facts and circumstances, which can be subject
to change. Since the cash outflows can take place many
years in the future, the carrying amounts of provisions
and liabilities are reviewed regularly and adjusted to
take account of changing facts and circumstances.

E. Impairment of financial assets:

The impairment provisions for financial assets are
based on assumptions about risk of default and
expected cash loss rates. The Company uses judgment
in making these assumptions and selecting the inputs to
the impairment calculation, based on Company's past
history, existing market conditions as well as forward
looking estimates at the end of each reporting period.

Estimates and judgments 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. They are continuously evaluated.

F. Fair Value measurement:

The Company measures financial instrument such as
certain investments, at fair value at each balance sheet
date.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly
transaction between market participants at the
measurement date. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most
advantageous market for the asset or liability.

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.

A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and
best use or by selling it to another market participant
that would use the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows,
based on the lowest level input that is significant to the
fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest
level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the
financial statements on a recurring basis, the Company
determines whether transfers have occurred between
levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the
fair value measurement as a whole) at the end of each
reporting period.

1) Securities Premium: Securities premium reserve represents premium received on equity shares issued, which can
be utilised only in accordance with the provisions of the Companies Act, 2013 for specified purposes.

2) Share Option Outstanding Account: Reserve relates to stock options granted by the Company to the employees under
an employee stock options plan.

3) General Reserve: General reserve is created from time to time by transferring profits from retained earnings and can
be utilised for purposes such as dividend payout, bonus issue, etc.

4) Retained earnings: Retained earnings are created from the profit / loss of the Company, as adjusted for distributions
to owners, transfers to other reserves, etc

Note 34 - Disclosure as per IND AS - 19 “employee benefits”.

(A) Expenses recognised for Defined Contribution Plan:

Employer's Contribution to Provident and Pension Fund Rs.31.51 Lakhs (PY Rs. 25.74 Lakhs).

Employer's Contribution to ESIC Rs. 5.73 Lakhs (PY Rs. 5.83 Lakhs)

The Company makes contributions towards provident fund and pension fund for qualifying employees to the Regional
Provident Fund Commissioner.

(B) Expenses recognised Defined Benefit Plan:

The company provides gratuity benefit to its employees which is a defined benefit plan. The present value of obligation
is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of
service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up
the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

Notes:

1. Salary escalation rate is arrived after taking into account regular increments, price inflation and promotion and other
relevant factors such as supply and demand in employment market.

2. Discount rate is based on prevailing market yields of Indian Government Securities as at balance sheet date for
estimated term of obligations.

3. Attrition rate/ withdrawal rate is based on Company's policy towards retention of employees, historical data and
industry outlook.4. The above information is certified by actuary.

These gratuity plan typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity
risk and salary risk.

Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting period on government bonds. For other defined benefit plans, the
discount rate is determined by reference to market yield at the end of reporting period on high quality corporate bonds
when there is a deep market for such bonds; if the return on plan asset is below this rate, it will create a plan deficit.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in
the return on the plan debt investments.

Longevity risk

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

Salary risk

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

Note 35 - Segment Reporting

The Company is mainly engaged in the development and operations of Pharmaceutical business. Accordingly, the
Company has only one identifiable segment reportable under Ind AS 108 - Operating Segments.

Managing Director (the ‘Chief Operational Decision Maker' as defined in Ind AS 108) monitors the operating results of
the company's business for the purpose of making decisions about resource allocation and performance assessment.

Note 36 - Related Party Disclosures 1

In view of the INDAS 24 “Related Parties Disclosures", the disclosure in respect of related party transactions for the
year ended on 31st March 2026 is as under:

a) Demand notices received on account of Property Tax pertaining to FY 2019-20 is aggregating's. 53.20 Lakhs (P.Y. Rs.
53.20 Lakhs) are disputed by the Company. The Company has filed a suit and the matter is pending in the Supreme Court
and Company has not yet deposited any amount in this regard.

b) Demand notices received on account of principal amount of CESS during FY 2019-20 pertaining to FY 1999-2000 and
FY 2000-2001 is aggregating Rs.22.85 Lakhs (P.Y.Rs.22.85 Lakhs ) are disputed by the Company. The Company has filed
a suit and the matter is pending in the Supreme Court and Company has not yet deposited any amount in this regard.

The above litigations are not expected to have any material adverse effect on the financial position of the company.

The Company's Board, out of abundant caution and as a prudent practice in line with the standard accounting practices
has not made any impairment provision against its investments for the financial year 2025-26.

Note 42 - Balance Confirmation

The balances in respect of Trade Receivables & Payables, loans and advances, as appearing in the books of accounts
are subject to confirmations by the respective parties and adjustments/reconciliation arising there from, if any.

Note 43 - Investment in Limited Liability Partnership

The Company is a partner in a partnership firm M/s. Arham Neeta Realties LLP. The accounts of the partnership firm
have been finalized up to the financial year 2025-26. The details of the Capital Accounts of the Partners as per the latest
Financial Statements of the firm are as under:

The Company has accounted for its share of loss amounting to Rs. 0.56 Lakhs (P.Y. Rs. 0.04 Lakhs) pertaining to the
financial year 2025-26.

Note 44 - Corporate Social Responsibility

The company is required to comply the requirements of CSR as per Section 135 of the Companies Act, 2013 read with
Schedule VII. Accordingly the company has spent an amount of Rs. 55.95 Lakhs during the Financial Year 2025-26.
Expenditure related to corporate social responsibility is :

Note 45 - Fair Value of Financial Assets and Liabilities:

Set out below is the comparison by class of carrying amounts and fair value of Company's financial instruments that are
recognised in the financial statements.

Fair valuation techniques:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most
relevant data available.

The following methods and assumptions were used to estimate the fair values

• Fair value of the Equity Shares are based on price quoted on stock exchange.

• Fair value of investment in unquoted equity shares are considered same as carrying value as the same are recently
acquired.

• Fair value of Financial Assets & Financial Liability (except which are show at their fair value) are carried at
amortised cost is not materially different from its carrying cost. The Financial Assets do not include investments in
group companies which are carried at cost.

Fair Value hierarchy:

The following table provides the fair value measurement hierarchy of Company's asset and liabilities, grouped into
Level 1 to Level 3 as described below:

Level 1: Quoted prices / published NAV (unadjusted) in active markets for identical assets or liabilities. It includes fair
value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet
date.

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices). Fair value of the financial instruments that are not
traded in an active market is determined by using valuation techniques. These valuation techniques maximise the use
of observable market data where it is available and rely as little as possible on the company specific estimates. If all
significant inputs required to fair value an instrument are observable then instrument is included in level 2

Note 46 - Financial Risk Management:

The Company's activities expose it to credit risk, liquidity risk and market risk. This note explains the sources of risks
which the entity is exposed to and how it mitigates that risk.

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. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks,
such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and
borrowings and investments in securities.

Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.

The Company is exposed to foreign exchange risk through purchases of goods or services from overseas supplier in
foreign currency. The Company generally transacts in US dollar. The foreign exchange rate exposure is balanced by
purchasing of goods or services in the respective currency.

The Company is exposed to insignificant foreign exchange risk as at the respective reporting dates.

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
changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates
primarily to the Company's long-term debt obligations with floating interest rates.

Commodity and Other price risk

The Company is not exposed to the commodity and other price risk.

Credit Risk

Credit risk is the risk of financial loss to the Company that a customer or counter party to a financial instrument fails to

meet its obligations. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks, mutual funds, financial institutions and other financial
instruments

Trade and other receivables:

The Company extends credit to customers in normal course of business. The Company considers factors such as credit
track record in the market and past dealings for extension of credit to customers. To manage credit risk, the Company
periodically assesses the financial reliability of the customer, taking into account the financial condition, current
economic trends, and analysis of historical bad debts and aging of accounts receivables. Outstanding customer
receivables are regularly monitored to make an assessment of recoverability.

Receivables are provided as doubtful / written off, when there is no reasonable expectation of recovery. Where
receivables have been provided / written off, the Company continues regular follow-up, engage with the customers,
legal options / any other remedies available with the objective of recovering these outstanding.

The Company is not exposed to concentration of credit risk to any one single customer since services are provided to
vast spectrum and hence, the concentration of risk with respect to trade receivables is low. The Company also takes
security deposits, advances, post-dated cheques etc. from its customers, which mitigate the credit risk to an extent."

Cash and cash equivalents another investments:

The Company is exposed to counter party risk relating to medium term deposits with banks and investment in mutual
funds.

The Company considers factors such as track record, size of the institution, market reputation and service standards to
select the banks with which balances and deposits are maintained. Generally, the balances are maintained with the
institutions with which the Company has also availed borrowings. “

Exposure to credit risk:

The gross carrying amount of financial assets, net of impairment losses recognised represents the maximum credit
exposure.

Cash and Cash equivalent, other Investment, Loans and other financial assets are neither past due nor impaired.
Management is of view that these financial assets are considered good and 12 months ECL
is not provided.

Liquidity risk:

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses.

The Company's objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral
requirements. The Company relies on a mix of borrowings, capital infusion and excess operating cash flows to meet its
needs for funds.

The current borrowings are sufficient to meet its short to medium term expansion needs. Management monitors the
Company's net liquidity position through rolling forecasts on the basis of expected cash flows.

The Company is required to maintain ratios (such as debt service coverage ratio and secured coverage ratio) as
mentioned in the loan agreements at specified levels and also cash deposits with banks to mitigate the risk of default in
repayments. In the event of any failure to meet these covenants , these loans become callable to the extent of failure at
the option of lenders, except where exemption is provided by lender.

Capital management

The primary objective of the Company's capital management is to maximize the shareholder value. The Company's
primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital
ratios and safeguard the Company's ability to continue as a going concern in order to support its business and provide
maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the
cost of capital. No changes were made in the objectives, policies or processes during the year ended March 31,2026 and
March 31,2025.

For the purpose of the Company's capital management, capital includes issued capital, share premium and all other
equity reserves. Net debt includes, interest bearing loans and borrowings, trade and other payables less cash and short
term deposits.

Note 49 - The previous year figures have been regrouped, reworked, rearranged and reclassified, wherever necessary
and are to be read in relation to the amounts and other disclosures relating to the current year.

Note 50 - Additional regulatory information required by Schedule III :Details of benami property held -

No proceedings have been initiated on or are pending against the company for holding benami property under the

Borrowing secured against current assets

The company does not have borrowings from banks and financial institutions on the basis of security of current
assets.

Wilful defaulter

Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

Relationship with struck off companies

The company has no transactions with the companies struck off under Companies Act, 2013 or Companies Act,
1956.

Compliance with number of layers of companies

The company has complied with the number of layers prescribed under the Companies Act, 2013.

Compliance with approved scheme(s) of arrangements

The company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

Utilisation of borrowed funds and share premium

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

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
Undisclosed income

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

Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.
Valuation of PPE, Intangible Asset and investment property

The company has not revalued its property, plant and equipment (including right.of.use assets) or intangible
assets or both during the current or previous year.