We have audited the accompanying standalone financial
statements of Neuland Laboratories Limited ("the
Company”), which comprise the Balance Sheet as at March
31,2026, the Statement of Profit and Loss including Other
Comprehensive Income, the Statement of Changes in
Equity and the Statement of Cash Flows for the year then
ended and notes to the standalone financial statements,
including material accounting policy information and other
explanatory information (hereinafter referred to as the
"standalone financial statements”).

In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ("the Act”) in the manner so required
and give a true and fair view in conformity with the Indian
Accounting Standards prescribed under section 133 of the
Act, read with Companies (Indian Accounting Standards)
Rules, 2015, as amended ("Ind AS”) and other accounting
principles generally accepted in India, of the state of affairs
of the Company as at March 31, 2026, and it's profit
including (other comprehensive income), changes in equity
and its cash flows for the year ended on that date.

BASIS FOR OPINION

We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing
(SAs) specified under section 143(10) of the Act. Our
responsibilities under those SAs are further described in
the 'Auditor's Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are
independent of the Company in accordance with the Code
of Ethics issued by the Institute of Chartered Accountants of
India together with the ethical requirements that are relevant
to our audit of the standalone financial statements under
the provisions of the Act and the Rules thereunder, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

KEY AUDIT MATTER

Key audit matter is the matter that, in our professional
judgment, was of most significance in our audit of the
standalone financial statements of the current period.
This matter was addressed in the context of our audit

of the standalone financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on this matter. We have determined the
matter described below to be the key audit matter to be
communicated in our report.

Impairment of Goodwill (Refer Note 37 of standalone
financial statements):

The goodwill balance as of March 31,2026, of ' 27,946.10
lakhs pertains to merger of Neuland Health Sciences Private
Limited ("NHSPL") and Neuland Pharma Research Private
Limited ("NPRPL") with the Company with appointed date
of April 01, 2016.

As at March 31, 2026, Goodwill represents 9.54% of the
Company's total assets and 14.98% of the Company's total
shareholder's equity. The Company has tested goodwill
for impairment on an annual basis as required by "IND AS
36 - Impairment of Asset". In determining the fair value /
value in use of business reporting units, the Company has
applied judgment in estimating future revenues, operating
profit margins, long-term growth rate and discount rates.

Due to significance of the above matter and involvement
of the significant management judgement in estimation of
fair value / value in use, the assessment of recoverability of
carrying value of goodwill is considered as key audit matter.

HOW THE KEY AUDIT MATTER WAS ADDRESSED
IN OUR AUDIT:

Our audit procedures in respect of this area included, but
are not limited to, following:

1. Obtained an understanding from the management
of the Company with respect to process followed
and assessed the design, implementation and tested
the operating effectiveness of internal controls over
impairment testing related to goodwill;

2. Assessed the Company's internal control overs
preparation of annual budgets and future forecasts for
the business as a whole and the approach followed for
annual impairment test and key assumptions applied;

3. Evaluated the reasonableness of the assumptions used
and appropriateness of the valuation methodology
applied and tested the discount rate and terminal growth
rates used in the forecast including comparison to
economic data, industry report, data from competitors
and historic performances wherever appropriate to
compare and corroborate;

4. Assessed reasonableness and appropriateness of the
future revenue and margin projections, the historical
accuracy of the Company's estimates and its ability to
produce accurate long-term forecasts;

5. Compared the reasonableness of future operating cash
flow forecasts with the business plan and budgets
approved by the Board; and tested the mathematical
accuracy of management's calculations;

6. Assessed the adequacy and appropriateness of
the disclosures made in the Standalone Financial
Statements in compliance with the requirements of
applicable Indian Accounting Standards and applicable
financial reporting framework.

INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
THEREON

The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Chairman's statement and
Director's report but does not include the standalone
financial statements and our auditor's report thereon,
and the Management Discussion and analysis, Business
Responsibility and Sustainability Report etc. which is
expected to be made available to us after that date.

Our opinion on the standalone financial statements does
not cover the other information and we do not and will not
express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other
information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated.

If, based on the work we have performed on the other
information that we obtained prior to the date of this auditor's
report, we conclude that there is a material misstatement of
this other information, we are required to report that fact.
We have nothing to report in this regard.

When we read the Management Discussion and analysis,
Business Responsibility and Sustainability Report etc., if we
conclude that there is a material misstatement therein, we
are required to communicate the matter to those charged
with governance.

RESPONSIBILITIES OF MANAGEMENT AND BOARD
OF DIRECTORS FOR THE STANDALONE FINANCIAL
STATEMENTS

The Company's Management and Board of Directors are
responsible for the matters stated in section 134(5) of the
Act, with respect to the preparation of these standalone
financial statements that give a true and fair view of the
financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including
the Ind AS. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act, for safeguarding of the assets of
the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the standalone financial
statement that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board
of Directors of the Company are responsible for assessing
the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the
Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but
to do so.

The Board of Directors is also responsible for overseeing
the Company's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF
THE STANDALONE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these standalone
financial statements.

We give in "Annexure A” a detailed description of
Auditor's responsibilities for Audit of the Standalone
Financial Statements.

REPORT ON OTHER LEGAL AND REGULATORYREQUIREMENTS

1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in "Annexure B” a statement on the
matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit of the aforesaid standalone
financial statements.

(b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
standalone financial statements have been kept
by the Company so far as it appears from our
examination of those books.

(c) The Balance Sheet, the Statement of Profit and
Loss (including Other Comprehensive Income), the
Statement of Changes in Equity and the Statement
of Cash Flows dealt with by this Report are in
agreement with the books of account maintained
for the purpose of preparation of the standalone
financial statements.

(d) In our opinion, the aforesaid standalone financial
statements comply with the Ind AS.

(e) On the basis of the written representations
received from the directors as on March 31,2026,
taken on record by the Board of Directors, none
of the directors are disqualified as on March 31,
2026, from being appointed as a director in terms
of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal
financial controls with reference to standalone
financial statements of the Company and the
operating effectiveness of such controls, refer to
our separate Report in "Annexure C”.

(g) With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
in our opinion and to the best of our information
and according to the explanations given to us:

i. The Company has disclosed the impact of
pending litigations on its financial position in its
standalone financial statements - Refer Note
40 to the standalone financial statements.

ii. The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses.

iii. There are no amounts which were required to
be transferred to the Investor Education and
Protection Fund by the Company during the
year ended March 31,2026.

iv. (1) The Management has represented that,

to the best of its knowledge and belief,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources or
kind of funds) by the Company to or in any
other person(s) or entity(ies), 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 by
or on behalf of the Company ("Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.

(2) The Management has represented,
that, to the best of its knowledge and
belief, no funds have been received
by the Company from any person(s)
or entity(ies), 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 by or on
behalf of the Funding Party ("Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries.

(3) Based on the audit procedures performed
that have been considered reasonable
and appropriate in the circumstances,
and according to the information and

the same has operated throughout the year
for all relevant transactions recorded in the
software. Further, during the course of our
audit, we did not come across any instance
of audit trail feature being tampered with.
Additionally, the audit trail of prior years has
been preserved by the Company as per the
statutory requirements for record retention to
the extent it was enabled and recorded.

3. In our opinion, according to information, explanations
given to us, the remuneration paid or provided by
the Company to its directors is within the limits laid
prescribed under Section 197 of the Act.

For M S K A & Associates LLP

(Formerly known as M S K A & Associates)

Chartered Accountants

ICAI Firm Registration No. 105047W/W101187

Prakash Chandra Bhutada

Partner

Membership No. 404621

UDIN: 26404621DQCKHM2767

Place: Hyderabad, India

Date: May 12, 2026