(i) Provisions

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 a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When

discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

(j) Employee Benefits Expense
Short Term Employee Benefits

The undiscounted amount of short-term employee benefits
expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period
when the employees render the services.

Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment benefit
plan under which the Company pays specified contributions
to a separate entity. The Company makes specified monthly
contributions towards Provident Fund, Superannuation
Fund and Pension Scheme. The Company's contribution is
recognised as an expense in the Statement of Profit and Loss
during the period in which the employee renders the related
service.

Defined Benefit Plans
Gratuity

The Company pays gratuity to the employees whoever has
completed five years of service with the Company at the
time of resignation / superannuation. The gratuity is paid
@15 days salary (Basic Salary) for every completed year of
service as per the Payment of Gratuity Act 1972.

Liabilities with regard to Gratuity Plan are determined by
actuarial valuation performed by an independent actuary at
the end of each Balance Sheet date using the projected unit
credit method. The Company makes contributions of the
ascertained liability to Jenburkt Pharmaceuticals Ltd Empl G
G & L A Scheme (“the Trust”). Trustees administer
contributions made and the contributions are invested in a
scheme with Life Insurance Corporation of India as
permitted by Indian Law.

The Company recognizes the net obligation of the defined
benefit plan in its Balance Sheet as asset or liability. Gains
and losses through re-measurements of the net defined
benefit liability / (asset) are recognized in other
comprehensive income and are not reclassified to profit and
loss in subsequent periods.

The current service cost of the defined benefit plan,
recognised in the profit or loss as employee benefits
expense, reflects the increase in the defined benefit
obligation resulting from employee service in the current
year, benefit changes, curtailments and settlements. Past
service costs are recognised in profit or loss in the period of a
plan amendment. 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 profit or loss.

Leave Encashment

The Company also pays Leave Encashment to the
Employees as follows:

Office Employees - 21 days leave salary (Basic Salary) for
every completed year of service

Field Employees - 30 days leave salary (Basic Salary) for
every completed year of service

The liability in respect of Leave Encashment Plan is
determined by actuarial valuation performed by an
independent actuary at the end of each Balance Sheet date
using the projected unit credit method. The Company makes
contributions as per the ascertained liability, and the
contributions are invested in a scheme with Life Insurance
Corporation of India.

The Company recognizes the net obligation of the defined
benefit plan in its Balance Sheet as asset or liability. Gains
and losses through re-measurements of the net defined
benefit liability / (asset) are recognized in the profit and loss
account.

Implementation of Labour Codes

The Government of India notified provisions of 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, ('Labour
Codes') on November 21, 2025, which consolidate twenty-
nine existing labour laws into a unified framework governing
employee benefit during employment and post¬
employment. The Labour Codes, amongst other things
introduces changes, including a uniform definition of wages
and enhanced benefits relating to leave.

The Ministry of Labour & Employment published draft
Central Rules and FAQs to enable assessment of the
financial impact due to changes in regulations. The Company
is in the process of aligning its salary structure with the
provisions of the new labour code, and accordingly assess
the impact of the changes, consistent with the Labour
Codes, draft rules, FAQs and legal opinion and made
necessary statutory provisions in the accounts. The
Company has assessed the financial implications of these
changes which has resulted in increase in gratuity liability
arising out of past service cost and increase in leave liability
by ? 395.11 Lacs as on March 31, 2026. Considering the
impact arising out of an enactment of the new legislation is
an event of non-recurring nature, the Company has
presented this incremental amount as “Impact of Labour
Codes” under “Exceptional Item” in the Standalone
Statement of Profit and Loss for the year ended March 31,
2026. The Company continues to monitor the
developments pertaining to Labour Codes and will evaluate
impact and provide appropriate accounting effect on the
basis of such developments as needed.

(k) Tax Expenses

The tax expense for the period comprises current and
deferred tax. Tax is recognised in Statement of Profit and
Loss, except to the extent that it relates to items recognised
in the other comprehensive income or in equity. In which
case, the tax is also recognised in other comprehensive
income or equity.

Current tax

Current tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation

authorities, based on tax rates and laws that are enacted or
substantively enacted at the Balance sheet date.

Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax statement
used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realised, based on tax rates (and
tax laws) that have been enacted or substantively enacted by
the end of the reporting period. The carrying amount of
deferred tax liabilities and assets are reviewed at the end of
each reporting period.

(l) Revenue Recognition

Revenue from sale of goods is recognised when the
significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is
probable, the associated cost can be estimated reliably,
there is continuing effective control or managerial
involvement with the goods, and the amount of revenue can
be measured reliably.

Revenue from sale of goods is measured at the fair value of
the consideration received or receivable, taking into account
contractually defined terms of payment and excluding taxes
or duties collected on beha lf of the government.

Sale of goods are recorded net of trade discounts, rebates,
and GST.

Interest income

Interest Income is recognised on a time proportion basis
taking into account the amount outstanding and applicable
interest rate.

Dividends

Revenue is recognised when the Company's right to receive
the payment has been established.

Export Benefits

The Company recognises export benefits only when there is
reasonable assurance that the conditions attached to them
will be complied with, and the benefits will be received

(m) Foreign currencies transactions and translation

Transactions in foreign currencies are recorded at the
exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign
currencies are translated at the functional currency closing
rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of
monetary items are recognised in Statement of Profit and
Loss

(n) Financial Instruments
i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially

recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities, which are not
at fair value through profit or loss, are adjusted to
the fair value on initial recognition. Purchase and
sale of financial assets are recognised using trade
date accounting.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is
held within a business model whose objective is to
hold the asset in order to collect contractual cash
flows and the contractual terms of the financial
asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the
principal amount outstanding.

Financial assets are carried at amortized cost using
the effective interest method. For trade and other
receivables and loans and advances maturing within
one year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments. Also, receivables,
loans and advances below transaction value of '. 30
lakhs are taken at carrying amount as the effect of
amortization is immaterial.

b) Financial assets at fair value through other
comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held
within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in the other comprehensive income
(OCI). However, the Company recognises interest
income, impairment losses & reversals and foreign
exchange gain or loss in the profit or loss. On
derecognition of the asset, cumulative gain or loss
previously recognised in OCI is reclassified in the
statement of other equity to profit or loss. Interest
earned whilst holding FVTOCI debt instrument is
reported as interest income using the EIR method.

c) Financial assets at fair value through profit or loss
(FVTPL)

A financial asset which is not classified in any of the
above categories are measured at FVTPL.

C. Equity Investments

All equity investments are measured at fair value,
with value changes recognised in 'Other
Comprehensive Income.

All fair value changes on the instrument, including
foreign exchange gain or loss and excluding
dividends, are recognised in the OCI. On sale of
investment the entire gain or loss that are
recognised in OCI are not reclassified to profit and
loss account but directly transferred to retained
earnings from OCI in the Statement of Other Equity.

date of approval by the shareholders and interim dividends
are recorded as a liability on the date of declaration by the
Board of Directors.

Companies are required to pay/distribute dividend after
deducting applicable withholding income taxes. The
remittance of dividends outside India is governed by Indian
law on foreign exchange and is also subject to withholding
tax at applicable rates.

The amount of per share dividend recognized as distribution
to equity shareholders is in accordance with Companies Act
2013.

(q) Buy Back of Shares

The Company bought back 176078 equity shares from the
open market route through the stock exchange mechanism,
during the year 2022-23. As a result of this buyback, the
paid-up equity shares of 4589378 equity shares of ? 10/-
each was reduced to 4413300 equity shares of ? 10/- each.
All the 176078 equity shares were extinguished on 24^th
March 2023.

(r) Segment Reporting

The company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of the
company as a whole.

The company operates only in single type of product i.e.
pharmaceutical formulations and therefore there is a single
primary segment as required by IND AS 108. The secondary
segmental reporting in the case of the company is on the
basis of geographica l location of customers as under:

(s) Contingent Liabilities

A provision is recognized when the Company has a present
obligation as a result of a past event; it is probable that an
outflow of resources will be required to settle the obligation,
in respect of which a reliable estimate can be made.
Provisions are not discounted to its present value and are
determined based on best estimate required to settle the
obligation at the Balance Sheet date. A disclosure for a
contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will
not, require an outflow of resources. Where there is a
possible obligation or a present obligation in respect of
which the likelihood of outflow of resources is remote, no
provision or disclosure is made. Contingent Liabilities are not
recognized but are disclosed in notes.

1. NPPA had served a show cause notice to the Company
alleging that a Company's product was violating a NPPA's
standing order. However, after a Personal Hearing and
detai led submission, N PPA passed a written order stating
that the Company's product did not violate the standing
order. Subsequently, NPPA reviewed its own order,
without having any power to review, issued show cause

notices and demand notice to the Company. The
Company subsequently filed a writ petition against the
demand of NPPA, at the Hon'ble High Court of Bombay.
The matter was settled in favour of the company. DPCO,
1995, explicitly debars NPPA to review its own order, the
very reason cited by Hon'ble High Court of Bombay, while
quashing the show cause notices and demand notice in
their judgment dated 08^th August, 2013 and 26^th
September, 2013. The NPPA after over a year filed a
Special Leave Petition (SLP) (demanding ? 16.45 crore) at
the Hon'ble Supreme Court. The Company has been
legally advised, that based on the facts and merits of the
case, the demand raised by N PPA is not likely to crystallize.
NPPA appeal was called on 05¹¹¹ June 2024 for hearing.
After hearing NPPA counsel, Supreme court passed order
to post the matter for four weeks. Thereafter it has not
come up for hearing.

2. The Drug Inspector, Tirupati, took a company product
from a local chemist and sent for test at a government
laboratory in Vijayawada which declared the samples as
Not of standard quality. Further, the said samples were
sent to Central Drug Laboratory at Kolkata. Both these
laboratories did not test the product in accordance to
the Company's method of analysis, as mandated for the
Proprietary medicine where no previous reference is
available for testing. They conducted testing by
different/ random method of Analysis which was
inappropriate and hence the product failed at such
analysis. Whereas same product of same batch tested
thereafter at Company's laboratory at Sihor and
recognised Laboratory in Mumbai which passed the
analysis, as they were based on the Company's method
of analysis for proprietary medicine. The Drug Inspector
then filed a case at I-Additional District Sessions Court,
Chittoor. The Company swiftly approached the Hon.
High Court, of Andhra Pradesh, Amravati and succeeded
in obtaining stay on 05^th May, 2022 on all further
proceedings initiated by lower court i.e. at I-Additional
District Sessions Court, Chittoor. In continuation of stay
granted by Hon. High Court of Andhra Pradesh, matter is
pending at lower court for hearing. The matter is also
pending in Hon. High Court of Andhra Pradesh. Last
hearing was on 29^th April 2026. The financial liability of
this matter cannot be ascertained at the current stage.

3. ESIC had on 01^st March 2018 issued show cause notice
to the company towards contribution of ? 0.60 Lacs for a
period from October 2012 to March 2013. Company
represented to the ESIC that the amount assessed on
various needs under the said notice are not payable.
Considering the same, revised show cause notice was
issued on 08¹¹¹ May 2018 towards contribution of ? 0.30
Lacs for the said period. To avoid coercive action, the
co m p a n y d e po si ted a sa i d a m o u n t of
? 0.30 Lacs under protest and approached the Hon. E.I.
Court to challenge legality and validity of the said notice
on various grounds. The Hon. E.I. Court declared that a
claim is time barred and passed the judgment on 20^th
September 2023 allowing our application and quashed
and set aside the said notice dated 08^th May 2018,
amounting to ? 0.30 Lacs for the above-mentioned
period. Being aggrieved by the said judgment and the

order dated 20^th September 2023 of the Hon. E.I. Court,
ESIC have filed an appeal in the Hon. High Court and
prayed to stay the implementation of the said order /
judgment passed on 20^th September 2023 by the Hon.
E.I. court. The Hon. High Court condoned the delay by
ESIC in filing the appeal and the appeal was registered
on 13^th June 2025. Thereafter there is no development.

4. There is a demand for ? 16.93 Lacs from Central Sale Tax
Dept. for the FY 16-17. The company is not in
agreement with same and have gone into appeal with
the Commissioner - Sales Tax. The same is expected to
be decided in the current year.

5. The Office of the Assistant Commissioner, GST
(Bhavnagar), has issued a show cause notice to the
Company regarding input tax credit (ITC) availed,
alleging it to be ineligible for the period from 2018-19
to 2024-25, amounting to ? 57.61. Lacs. The Company
has filed an appeal against the aforesaid demand and has
deposited ? 5.76 lakhs Tax in this regard. Based on the
current assessment, the demand is not expected to
materialize.

(t) Micro Small and Medium Enterprises (MSME):

Based on the information and the copy of MSME
registration certificate submitted by the vendors, the
Company, has identified Micro, Small and Medium
Enterprises. The Company has provided for interest as per
section 16 of the MSMED Act on payments which were

overdue to Micro & Small Enterprises, beyond the timelines
as mandated in section 15 of the MSMED Act.

As required under Sec 22 of MSMED Act, 2006 under the
Chapter on Delayed Payments to Micro, Small and Medium
Enterprises and as per Ind AS Schedule III below are the details
required: Please refer to “Table for MSME” appearing below.

(u) Cash and Cash Equivalents:

Cash and cash equivalent in the balance sheet comprise cash
at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject
to an insignificant risk of changes in value.

(v) Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company,
meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding
three financial years on corporate social responsibility (CSR)
activities. The areas for CSR activities are eradication of
hunger and malnutrition, promoting education, art and
culture, healthcare, destitute care and rehabilitation,
environment sustainability, disaster relief, COVID-19 relief
and rural development projects. A CSR committee has been
formed by the company as per the Act. The funds were spent
during the year on these activities which are specified in
Schedule VII of the Companies Act, 2013:

Please refer to “Table for CSR” appearing below.

C. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES
OF ESTIMATION UNCERTAINTY

The preparation of the Company's financial statements requires
management to make judgement, estimates and assumptions
that affect the reported amount of revenue, expenses, assets
and liabilities and the accompanying disclosures. Uncertainty
about these assumptions and estimates could result in outcomes
that require a material adjustment to the carrying amount of
assets or liabilities affected in future periods

(i) Depreciation / amortisation and useful lives of property
plant and equipment / Right to Use / intangible assets
Property, plant and equipment / intangible assets are
depreciated / amortised over their estimated useful lives,
after taking into account estimated residual value.
Management reviews the estimated useful lives and residual
values of the assets annually in order to determine the
amount of depreciation / amortisation 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 / amortisation for future periods
is revised if there are significant changes from previous
estimates.

(ii) Recoverability of trade receivable

Judgements are required in assessing the recoverability of
overdue trade receivables and determining whether a
provision against those receivables is required. Factors
considered include the credit rating of the counterparty, the
amount and timing of anticipated future payments and any
possible actions that can be taken to mitigate the risk of non¬
payment.

(iii) 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 requires the
application of judgement to existing facts and
circumstances, which can be subject to change. The carrying
amounts of provisions and liabilities are reviewed regularly
and revised to take account of changing facts and
circumstances.

(iv) Impairment of non-financial assets

The Company assesses at each reporting date whether there
is an indication that an asset may be impaired. If any
indication exists, the Company estimates the asset's
recoverable amount. An asset's recoverable amount is the
higher of an asset's or Cash Generating Units (CGU's) fair
value less costs of disposal and its value in use. It is
determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those
from other assets or groups of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount,
the asset is considered impaired and is written down to its
recoverable amount.

In assessing value in use, the estimated future cash flows are
discounted to their present value using pre-tax discount rate
that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transactions are
taken into account, if no such transactions can be identified,
an appropriate valuation model is used.

(v) 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 judgement 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.