i) Raw Materials, Stores and Spares are valued at lower of cost or net realizable value and costs are determined on Weighted Average Cost.

ii) Work in progress and finished goods are valued at cost of purchase of raw materials, cost of conversion and other cost incurred in bringing the inventories to their present location and condition or net realisable value which ever is lower.

iii) The Inventories are hypothecated for charge in favour of lending Bank.

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Neither any trade nor other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

Trade receivabls are non-interest bearing and generally on terms of respective contracts.

Terms / rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees to the share holders as per the share holdings.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company has no Subsidairies and Associates.

Nature and purpose of other reserves :Securities Premium Reserve :

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Capital Reserves

This reserve represents central subsidy received and forfeiture amount on shares which are cancelled and not reissuable.

Surplus in the statement of profit and loss

This reserve is used from time to time transfer of profits from retained earnings for appropriation purpose.

Retained Earnings

This reserve was araised due to conversion of financial statements as per Indian Accounting Standards (Ind AS)

Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Comapany transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

The above Term Loans payable to bank are secured by hypothetication of stocks and receivables and also secured by equilable mortgage of land and buildings and hypothecation of plant and machinery and other fixed assets. Further guaranteed by Directors in their individual capacity.

Vehicle loams are secured by hypothecation of respective vehicles

Security for Secured Loans

1. The working capital loan from Bank is secured by Stock-in-Trade, Book debts and Equitable Mortgage of Land, Buildings and charge on Plant & Equipment.

2. The working capital loan from Bank and liability for bills discounted are further guranteed by Directors in their individual capacity and interest rate ranging betweem 9% and 9.75% PA based on the MCLR.

34. Segment Reporting

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services. Based on the ‘Management' approach as defined under Ind AS108, the Chief Operating Decision Maker (CODM) evaluates the performance on a periodical basis and allocates resources based on an analysis of the performance of various Businesses. The CODM is the Managing Director. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments and are as set out in the Material Accounting Policies. Since, the Company is mainly pursuing only one activity i.e. manufacturing and selling of Bulk Drugs and Drug Intermediates, reporting of segment revenue and results does not arise.

35. Employee benefitsa. Defined Benefit Plans:

The Company operates defined contribution schemes like Employee State Insurance Scheme. For this scheme contributions are made by the company and employees at a predetermined rate based on current salaries.

i. Regulatory Framework:

There are no minimum funding requirements for a gratuity plan in India. The Company has chosen not to fund the gratuity liabilities of the plan but instead carry a provision based on actuarial valuation in its books of accounts. The only regulatory framework which applies to such plans is if the company is covered by the Payment of Gratuity Act, 1972 then the Company is bound to pay the statutory minimum gratuity as prescribed under this Act.

ii. Governance of the Plan:

The Company is responsible for the overall governance of the plan. Since the plan is unfunded, the governance of the plan is limited to employees being paid gratuity as per the terms of the plan.

iii. Risk exposures: Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

(a) Interest Rate risk: The plan exposes the Company to the rise of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

(b) Liquidity Risk: This is the risk that the Company is not able to meet the short-term Benefit payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

(c) Salary escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

(d) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

(e) Regulatory Risk: Benefit is paid in accordance with the Provisions of Gratuity Act 1972 (as may be amended from time to time). There is a risk of change in provisions of Gratuity Act requiring higher Plan Benefit pay outs (e.g. change in benefit formula).

(f) Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/fall in interest rate.

(g) Investment Risk: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

iv. Amendments, Curtailments and Settlements - Not applicable in this case

v. Disaggregation of plan assets: The plan is unfunded and therefore has not invested directly in any property occupied by the Company nor in any financial securities issued by the Company.

vi. Key Actuarial assumptions:

(a) Demographic assumptions

i. Retirement age of employees of the company are assumed at 58 years

ii. Mortality:

Published rates under the Indian Assured Lives Mortality (2012-14) Ult table.

vii. Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the change in defined benefit obligation and impact in percentage terms compared with the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses

Special Events:

There are no special events such as benefit improvements or curtailments or settlements during the inter-valuation period.

viii. Funding Arrangements & Policy:

There is no compulsion on the part of the Company to pre fund the liability of the plan. The Company's philosophy is to not to externally fund these liabilities but instead create an accounting provisions in its books of accounts and pay the gratuity to its employees directly from its own resources as and when the employee leaves the Company.

The expected contribution payable to the plan next year is therefore Nil.

ix. Projected plan cash flow and maturity profile:

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan based on past service of the employees as at the valuation date:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the Asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The investments in certain quoted and unquoted instruments which are held for medium or long-term strategic purpose and are not held for trading purpose. Upon application of IND AS 109, the company has chosen to designate these equity instruments at FVTOCI as the management believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value in profit and loss account.

Financial instruments and risk management framework

The Company's activities expose it to a variety of financial risks, including credit risk, liquidity risk and Market risk. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company's activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company's risk assessment and management policies and processes.

a) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Trade Receivables - The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses Expected Credit Loss (ECL) model for assessing the impairment loss. As Company trade receivables are realised within normal credit period adopted by the company, hence the financial assets are not impaired.

Financial assets that are neither past due nor impaired - None of the Company's cash equivalents, including deposits with banks, were past due or impaired as at 31^st March, 2025.

b) Liquidity Risks

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, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.

As of 31^st March, 2025 and 2024 the Company had unutilized credit limits from banks of Rs. 317.30 Lacs and Rs.69.41 Lacs respectively.

As of 31^stMarch, 2025, the Company had working capital (current assets less current liabilities) of Rs.1,652.99 Lacs including cash and cash equivalents of Rs.338.20 Lacs, As of 31^st March, 2024, the Company had working capital of Rs.607.71 Lacs including cash and cash equivalents of Rs.297.76 Lacs.

c) Market Risks

Market risk is the risk that changes in market prices such as commodity prices risk, foreign exchange rates and interest rates which will affect the Company's financial position. Market risk is attributable to all market risk sensitive financial instruments. Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market Risk comprises three types of risk: Interest Rate Risk, Foreign Currency Risk and Commodity Risk.

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 is not having any debt obligations with floating interest rates.

Foreign Currency Risk

Foreign Currency Risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in foreign exchange rates.

Commodity Price Risk

The Commodity Price Risk is affected by the price volatility of certain commodities. The Company is not having any exposure for any commodity.

39. Capital Management

The Company's objective for capital management is to maximize shareholder wealth, safeguard business continuity and support the growth of the Company. The Company determines the capital management requirement based on annual operating plans and long term plans. The funding requirements are met through equity, borrowings and operating cash flows required. The Company's capital comprises Equity Share Capital, Retained Earnings and other equity attributable to equity holders.

40. The Company identifies dues to Micro, Small and Medium Enterprises (MSME) on the basis of information made available to the Company by the suppliers.

The Company seeks the information and based on the information available it classifies dues to Micro, Small and Medium Enterprises. As per information available with the Company, there are no amounts due to such MSME vendors.

43. The Government has acquired land owned by the company under Land Acquisition Act, and paid a compensation of Rs.5.85 Lacs. The Company has accepted the compensation under protest as the negotiation was finalized by Price Negotiation Committee under the Chairmanship of Joint Collector, Anantapur for purchase of same land for Rs.30.02 Lacs was unfair and inadequate. Hence the Company has filed a suit in against Government for payment of higher compensation. Pending disposal of the case, the Company accounted compensation as claimed by the Company in the suit and additional compensation of Rs.4.21 Lacs is included as claims receivable under Long Term Loans and Advances.

1. Total Debt = Long term Borrowings (including current maturities of Long term Borrowings), Sales tax deferment loan (current and non-current), short term borrowings and Interest accrued on Debts

2. Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortizations Interest other adjustments like loss on sale of Fixed assets etc

3. Debt service = Interest & Lease Payments Principal Repayments

4. Avg. Shareholder's Equity = Average of Opening Total Equity and Closing Total Equity

5. Avg. Inventory = Average of Opening Inventory and Closing Inventory

6. Avg. Trade Receivable = Average of Opening Trade Receivables and Closing Trade Receivables

7. Avg. Trade Payables = Average of Opening Trade Payables and Closing Trade Payables

8. Working capital shall be calculated as current assets minus current liabilities

9. Capital Employed = Tangible Net Worth (excluding revaluation reserve) Total Debt Deferred Tax Liability

10. Average Total Assets = Average of Opening Total Assets and Closing Total Assets

11. Average Total equity = Average of Opening Equity Share capital Other equity and Closing Equity share capital Other equity.

45. Additional Regulatory Information:

(1) The Title Deeds of the immovable property of the company are held in the name of the company.

(2) The property Plant and Equipment and Intangible assets held with the company are not subjected to any revaluation during the year.

(3) The Company has not granted any loans or Advances in the nature of Loans to Promoters, Directors, KMPs and other related parties as well as advance to any other parties .

(4) The Company has capital work in progress of Rs.88.25 lakhs as on 31st, March 2025, the ageing analysis is provided in note no. 4. There are no other capital work in progress whose completion is overdue.

(5) The Company is not holding any benami property and no proceeding has been initiated or pending against the company.

(6) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961(such as search or survey or any relevant provisions of Income Tax Act, 1961)

(7) (A) The Company has not advanced or loaned or invested any funds in any other person(s)

or entity(ies), including foreign entities (intermediaries) with understanding that the intermediary shall be directly or indirectly lend or invest in other person or entities on behalf of the company or provide any guarantee or security or the like to or on behalf pf the company.

(B) The Company has not received any funds from any person(s) or entity(ies), including foreign entities (funding party) with the understanding that company shall lend or invest in other person or entity identified in any manner by or on behalf of the funding party/

Ultimate beneficiary or provide any guarantee or security or the like on behalf of the funding party/ Ultimate beneficiary.

(8) The Company is not declared as willful defaulter by any Bank or Financial Institutions or RBI or other lenders.

(9) The Company has borrowings from Banks or Financial Institutions on the basis of security of Current Assets. Quarterly returns or Statement of Current Assets filed by the company with Banks or Financial Institutions are in agreement with the Books of Accounts.

(10) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

(11) The company has no transactions and no relationship with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956.

(12) There are no Schemes of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

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

(14) The Company has not made any investments through any layer of investment companies.

(15) The provisions of section 135 are not applicable to the Company as profit for the year is below the threshold limit prescribed under section 135 of the act.

46. Confirmation of balances of certain parties for amounts due to them / due from them as per the accounts of the company have not been received. It is stated in the confirmation letters sent to the parties that the balance available with company is final if the confirmation is not received from the party with in 15 days from the date of the mail. Hence it is treated that our balances are final for the parties who have not confirmed their balances.

47. Previous year figures have been re-grouped/re-arranged wherever necessary to make them comparable to current year's classification.

48. Amounts have been rounded off to nearest Rupees in Lakhs.

49. Approval of financial statements

The Standalone financials statements approved by the Board of Directors in their meeting held on May 30,2025