2.16 Provisions, contingent liabilities and contingent
assets

Provisions are recognised when present obligations as a
result of past events will probably lead to an outflow of
economic resources from the Company and they can be
estimated reliably. Timing or amount of the outflow may

still be uncertain. A present obligation arises from the
presence of a legal or constructive obligation that has
resulted from past events.

Provisions are measured at the best estimate of
expenditure required to settle the present obligation at
the reporting date, based on the most reliable evidence,
including the risks and uncertainties and timing of
cashflows associated with the present obligation.

In those cases where the possible outflow of economic
resource as a result of present obligations is considered
improbable or remote, or the amount to be provided for
cannot be measured reliably, no liability is recognised in
the balance sheet.

Any amount that the Company can be virtually certain to
collect from a third party with respect to the obligation is
recognised as a separate asset up to the amount of the
related provisions. All provisions are reviewed at each
reporting date and adjusted to reflect the current best
estimate.

Contingent assets are not recognised. However,
contingent assets are assessed continually and if it is
virtually certain that an inflow of economic benefits will
arise, the asset and related income are recognised in the
period in which the change occurs.

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 the obligation
or a reliable estimate of the amount cannot be made.
The Company does recognise a contingent liability but
discloses its existence in the financial statements.

2.17 Share based compensation

All employee services received in exchange for the grant of
any equity-settled share-based compensation are measured
at their fair values. These are indirectly determined by
reference to the fair value of the share options awarded.
Their value is appraised at the grant date and excludes the
impact of any non-market vesting conditions (for example,
profitability and sales growth targets).

All share-based compensation is ultimately recognised
as an expense in the statement of profit and loss with
a corresponding credit to equity (Stock compensation
reserve). If vesting periods or other vesting conditions
apply, the expense is allocated over the vesting period,
based on the best available estimate of the number of
share options expected to vest. Non-market vesting
conditions are included in assumptions about the
number of options that are expected to become
exercisable. Estimates are subsequently revised, if
there is any indication that the number of share options
expected to vest differs from previous estimates.

No adjustment is made to expense recognised in prior
periods if fewer share options are ultimately exercised
than originally estimated. Upon exercise of share
options, the proceeds received net of any directly
attributable transaction costs up to the nominal value of
the shares issued are allocated to share capital with any
excess being recorded as Securities premium.

2.18 Earnings per share:

Basic earnings per share is computed by dividing
the net profit for the period attributable to the equity
shareholders of the Company by the weighted average
number of equity shares outstanding during the
period. The weighted average number of equity shares
outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that
have changed the number of equity shares outstanding,
without a corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.

2.19 Statement of cash flow

Statement of Cash Flows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported
using indirect method, adjusting the profit before tax
excluding exceptional items for the effects of:

(i) changes during the period in inventories and
operating receivables and payables, transactions
of a non-cash nature;

(ii) non-cash items such as depreciation, provisions,
unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are
investing or financing cash flows.

Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items
which are not available for general use as at the date of
Balance Sheet.

2.20 Government Grants

Government grants are recognised if there is reasonable
assurance that:

(i) the entity will comply with the conditions attaching
to them and

(ii) the grants will be received.

Government grants shall be recognised in profit or loss
on a systematic basis over the periods in which the entity
recognises as expenses the related costs for which the
grants are intended to compensate.

Government grants related to assets are recognised as
income in equal amounts over the expected useful life of
the related asset.

Export entitlement from government authority are
recognised in the profit or loss as other operating
revenue when the right to receive is established as per
the terms of the scheme in respect of the exports made
by the Company with no further related cost and where
there is no significant uncertainty regarding the ultimate
collection of the relevant export proceeds.

2.21 Business Combinations

The acquisition method of accounting is used to account
for all business combinations, regardless of whether
equity instruments or other assets are acquired. The
consideration transferred for the acquisition of a
subsidiary comprises the:

• fair values of the assets transferred;

• liabilities incurred to the former owners of the
acquired business;

• equity interests issued by the group; and

• fair value of any asset or liability resulting from a
contingent consideration arrangement.

Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are, with
limited exceptions, measured initially at their fair values
at the acquisition date. The Company recognises any
non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at
the non-controlling interest's proportionate share of the
acquired entity's net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the

• consideration transferred;

• amount of any non-controlling interest in the
acquired entity, and

• acquisition-date fair value of any previous equity
interest in the acquired entity over the fair value
of the net identifiable assets acquired is recorded
as goodwill. If those amounts are less than the fair
value of the net identifiable assets of the business
acquired, the difference is recognised in other
comprehensive income and accumulated in equity
as capital reserve provided there is clear evidence of
the underlying reasons for classifying the business
combination as a bargain purchase. In other cases,
the bargain purchase gain is recognised directly in
equity as capital reserve.

Where settlement of any part of cash consideration
is deferred, the amounts payable in the future are
discounted to their present value as at the date
of exchange. The discount rate used is the entity's

incremental borrowing rate, being the rate at which
a similar borrowing could be obtained from an
independent financier under comparable terms and
conditions.

Contingent consideration is classified either as equity
or a financial liability. Amounts classified as a financial
liability are subsequently remeasured to fair value with
changes in fair value recognised in the consolidated
statement of profit and loss.

If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer's previously
held equity interest in the acquiree is remeasured to fair
value at the acquisition date. Any gains or losses arising
from such remeasurement are recognised in profit or
loss or other comprehensive income, as appropriate.

3. CRITICAL ACCOUNTING ESTIMATES AND
SIGNIFICANT JUDGEMENT IN APPLYING
ACCOUNTING POLICIES

Estimation Uncertainty

The preparation of these financial statements in
conformity with Ind AS requires the application of
judgment by management in selecting appropriate
assumptions for calculating financial estimates,
which inherently contain some degree of uncertainty.
Management estimates are based on historical
experience and various other assumptions that are
believed to be reasonable in the circumstances, the
results of which form the basis for making judgments
about the reported carrying values of assets and
liabilities and the reported amounts of revenues and
expenses that may not be readily apparent from other
sources. Actual results may differ from these estimates
under different assumptions or conditions.

Estimates of life of various tangible and intangible
assets, and assumptions used in the determination
of employee-related obligations and fair valuation of
financial and equity instrument, impairment of tangible
and intangible assets represent certain of the significant
judgements and estimates made by management.

Estimates

Revenue

Gross turnover is reduced by rebates, discounts,
allowances and product returns given or expected to
be given, which vary by product arrangements and
buying groups. These arrangements with purchasing
organisations are dependent upon the submission of
claims sometime after the initial recognition of the sale.
Accruals are made at the time of sale for the estimated
rebates, discounts or allowances payable or returns to
be made, based on available market information and
historical experience.

Because the amounts are estimated they may not fully
reflect the final outcome, and the amounts are subject
to change dependent upon, amongst other things, the
types of buying group and product sales mix.

The level of accrual for rebates and returns is reviewed
and adjusted regularly in the light of contractual and
legal obligations, historical trends, past experience
and projected market conditions. Market conditions
are evaluated using wholesaler and other third-party
analyses, market research data and internally generated
information. Revenue is not recognised in full until it is
highly probable that a significant reversal in the amount
of cumulative revenue recognised will not occur.

Future events could cause the assumptions on which
the accruals are based to change, which could affect the
future results of the Company.

Useful lives of various assets

Management reviews the useful lives of depreciable
assets at each reporting date, based on the expected
utility of the assets to the Company. The useful lives are
specified in note 2.5 and 2.7

Leases

Ind AS 116 requires Company to make certain
estimations, and those that are significant are disclosed
below.

Key sources of estimation and uncertainty include:

• calculating the appropriate discount rate

• estimating the lease term
Post-employment benefits

The cost of post-employment benefits is determined
using actuarial valuations. The actuarial valuation involves
making assumptions about discount rates, expected rate
of return on assets, future salary increases and mortality
rates. Due to the long term nature of these plans such
estimates are subject to significant uncertainty.

Fair value of financial instruments

Management uses valuation techniques in measuring
the fair value of financial instruments where active
market quotes are not available. In applying the
valuation techniques, management makes maximum
use of market inputs and uses estimates and
assumptions that are, as far as possible, consistent with
observable data that market participants would use in
pricing the instrument. Where applicable data is not
observable, management uses its best estimate about
the assumptions that market participants would make.
These estimates may vary from the actual prices that
would be achieved in an arm's length transaction at the
reporting date.

Expected credit loss

The Company applies expected credit losses (ECL) model
for measurement and recognition of loss allowance on
the following:

i Trade receivables.

ii Financial assets measured at amortised cost other
than trade receivables.

In case of trade receivables, the Company follows a
simplified approach wherein an amount equal to lifetime
ECL is measured and recognised as loss allowance. In
case of other assets (listed as ii above), the Company
determines if there has been a significant increase in credit
risk of the financial asset since initial recognition. If the
credit risk of such assets has not increased significantly,
an amount equal to twelve month ECL is measured and
recognised as loss allowance. However, if credit risk has
increased significantly, an amount equal to lifetime ECL is
measured and recognised as loss allowance.

The financial statements have been prepared using the
measurement basis specified by Ind AS for each type of
asset, liability, income and expense. The measurement
bases are more fully described in the accounting policies.

The estimates and underlying assumptions are reviewed
on an on-going basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period or in the
period of the revision and future periods if the revision
affects both current and future periods.

Inventory Obsolescence

The factors that the Company considers in determining
the allowance for slow moving, obsolete and other non¬
saleable inventory includes estimated shelf life, planned
product discontinuances, price changes, ageing of
inventory and introduction of competitive new products,
to the extent each of these factors impact the Company's
business and markets. The Company considers all these
factors and adjusts the inventory provision to reflect its
actual experience on a periodic basis.

Significant Judgement
Research and development costs

Management monitors progress of internal research
and development projects by using a project
management system. Significant judgement is required
in distinguishing research from the development phase.
Development costs are recognised as an asset when
all the criteria are met, whereas research costs are
expensed as incurred.

Management also monitors whether the recognition
requirements for development costs continue to be
met. This is necessary due to inherent uncertainty in the
economic success of any product development.

Leases

Ind AS 116 requires Company to make certain
judgements, and those that are significant are disclosed
below.

Critical judgements are required when an entity is,

• determining whether or not a contract contains a
lease

• establishing whether or not it is reasonably certain
that an extension option will be exercised

• considering whether or not it is reasonably certain
that a termination option will not be exercised

Impairment

An impairment loss is recognised for the amount by
which an asset's or cash-generating unit's carrying
amount exceeds its recoverable amount. To determine
the recoverable amount, management estimates
expected future cash flows from each asset or cash¬
generating unit and determines a suitable interest rate
in order to calculate the present value of those cash
flows. In the process of measuring expected future cash
flows, management makes assumptions about future
operating results. These assumptions relate to future
events and circumstances. The actual results may vary,
and may cause significant adjustments to the Company's
assets.

In most cases, determining the applicable discount
rate involves estimating the appropriate adjustment to
market risk and the appropriate adjustment to asset-
specific risk factors.

Current taxes

Significant judgments are involved in determining
the provision for income taxes including judgment on
whether tax positions are probable of being sustained in
tax assessments. A tax assessment can involve complex
issues, which can only be resolved over extended time
periods. The recognition of taxes that are subject to
certain legal or economic limits or uncertainties is
assessed individually by management based on the
specific facts and circumstances.

Deferred tax

The assessment of the probability of future taxable profit
in which deferred tax assets can be utilized is based on
the Company's latest approved budget forecast, which is
adjusted for significant non-taxable profit and expenses
and specific limits to the use of any unused tax loss or
credit. If a positive forecast of taxable profit indicates
the probable use of a deferred tax asset, especially when
it can be utilised without a time limit, that deferred tax
asset is usually recognised in full. The recognition of
deferred tax assets that are subject to certain legal or
economic limits or uncertainties is assessed individually
by management based on the specific facts and
circumstances.

NOTE 2 - Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended
March 31, 2025, MCA has notified Ind AS 117 - Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and lease back transactions, applicable
from April 1,2024. The Company has assessed that there
is no significant impact on its financial statements.

On May 9, 2025, MCA notifies the amendments to Ind
AS 21 - Effects of Changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance
on assessing currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective for
annual periods beginning on or after April 1, 2025. The
Company is currently assessing the probable impact of
these amendments on its financial statements.

Adoption of new and revised standards

Below are list of new standards and amendments that
are effective for the first time for periods commencing
on or after April 1,2025 (i.e. year ending March 31,2026).

i) Ind AS 7 Statement of Cash Flows and Ind AS
107 Financial Instruments : Disclosure - Supplier
Finance Arrangements

ii) Ind AS 1 Presentation of Financial Statements

- Classification of Liabilities as Current or Non¬
current and Non-current Liabilities with Covenants

iii) Ind AS 12 Income Taxes - International Tax Reform

- Pillar Two model rules

iv) Ind AS 21 The Effect of Changes in Foreign Exchange
Rates - Lack of Exchangeability

These amendments did not have material impact on
the amounts recognized in prior periods and are not
expected to significantly affect the current or future
periods.

New amendments issued but not effective:

Ind AS 1 Presentation of Financial Statements:

For accounting period beginning on or after 1 April 2026,
when an entity breaches any covenant of a long-term
loan arrangement on or before the end of the reporting
period with the effect that the liability becomes payable
on demand, it classifies the liability as current, even if
the lender agreed, after the reporting period and before
the approval of the financial statements for issue, not to
demand payment as a consequence of the breach. An
entity classifies the liability as current because, at the end
of the reporting period, it does not have the right to defer
its settlement for at least 12 months after that date.

However, an entity classifies the liability as non-current if
the lender agreed by the end of the reporting period to
provide a period of grace ending at least 12 months after
the reporting period, within which the entity can rectify
the breach and during which the lender cannot demand
immediate repayment.

This amendment is to be applied retrospectively for
annual reporting periods beginning on or after 1 April
2026, in accordance with Ind AS 8, Accounting Policies,
Accounting Estimates and Errors.

There is no capital work-in-progress whose completion is overdue or has exceeded its cost as compared to its original plan as at
31 March 2026 and 31 March 2025.

NOTE 3.2 - Right-of-use asset

The Company has entered into a lease arrangement for office premises and furniture in the ordinary course of business. Such
leases are generally for a period of 2 to 12 years, with option of renewal on a periodic basis by mutual consent of both parties.
Most of the operating leases provide for a percentage increase in rent, at the end of the original lease terms, for future renewed
periods. These leasing arrangements are cancellable by the lessor/lessee within 1 to 3 months' notice except in case of certain
leases where there is a lock in period/ non-cancellable period of 4 to 5 years. The Company does not have any lease restrictions
and commitment towards variable rent as per the contract.

** The percentage shareholding above has been computed considering the outstanding number of shares of 282,200,809 as at

31 March 2026 and 282,188,156 as at 31 March 2025.

(IV) As at 31 March 2026, pursuant to Employee Stock Options Scheme 2016, 131,881 (2025 - 37,779) options were outstanding,
which upon exercise are convertible into equivalent number of equity shares.

(V) Right, Preference and restriction on shares

The Company presently has only one class of ordinary equity shares. For all matters submitted to vote in the shareholders
meeting, every holder of ordinary equity shares, as reflected in the records of the Company on the date of the shareholders'
meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment
of capital in the event of liquidation of the Company.

(VI) In the period of five years immediately preceding 31 March 2026, the Company has not allotted any shares as fully paid up
pursuant to contracts without payment being received in cash. Further, the Company has neither issued bonus shares nor
bought back any shares during the aforementioned period.

(VII) Employee Stock Option Scheme 2016 (ESOS)

The Company has formulated an Employee Stock Option Scheme 2016 '(ESOS 2016)' under which it has made grants on
various dates from time to time. Each grant has a vesting period which varies from 1 - 6 years from the date of grant
depending on the terms of the grant. The grants are made at the market price of the equity shares of the Company on either
the date of the grant or the closing price of the date prior to the day of the grant or the price decided by the Nomination &
Remuneration Committee of the Board. Pursuant to ESOS 2016, 1,31,881 (2025 - 37,779) options were outstanding as at 31
March 2026, which upon exercise are convertible into equivalent number of equity shares. Employee stock compensation
charged during the year is ' 44.66 (2025 - ' Nil).

a) Ordinary shares

The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders meeting,
every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders' meeting, has
one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in
the event of liquidation of the Company.

b) Dividends

Indian statutes mandate that dividends be declared out of distributable profits in accordance with the regulations. Should
the Company declare and pay dividends, such dividends are required to be paid in INR to each holder of equity shares in
proportion to the number of shares held. Dividends are taxable in the hands of the shareholders and tax is deducted by the
Company at applicable rates.

c) Reserves

Securities premium reserve - The amount received by the Company over and above the face value of shares issued is
shown under this head. It is available for utilisation as per the provisions of the Companies Act, 2013.

Capital redemption reserve - The capital redemption reserve had been created as per the requirement of earlier provisions
of Companies Act, 1956. Such reserve is not currently available for distribution to the shareholders. The reserve can be
utilised in accordance with the provisions of section 69 of the Companies Act, 2013.

General reserve - The Company had transferred a portion of the net profit of the Company before declaring dividend to
general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not
required under the Companies Act, 2013.

Retained earnings - Accumulated earnings include all current and prior period profits as disclosed in the statement of
profit and loss.

Stock compensation reserve - Stock compensation reserve consists of employee compensation cost allocated over the
vesting period of options granted to employees. Such cost is recognised in statement of profit and loss and is credited to
the reserve. Upon exercise of options, such reserves are reclassified to equity share capital at the nominal capital value and
excess through securities premium as the case may be.

Special Economic Zone (SEZ) reinvestment reserve - The SEZ reinvestment reserve has been created out of profit of
eligible SEZ units in terms of the provisions of Section 10AA(1)(ii) of the Income-Tax Act, 1961. The reserve has been utilised
for acquiring new plant and machinery for the purpose of its business in terms of section 10AA(2) of the Income-Tax Act,
1961.

NOTE 26 - EMPLOYEE POST- RETIREMENT BENEFITS

The following are the employee benefit plans applicable to the employees of the Company.

a) Gratuity (defined benefit plan)

In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("the Gratuity
Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement,
death, incapacitation or termination of employment of amounts that are based on salary and tenure of employment.
Liabilities with regard to the gratuity plan are determined by actuarial valuation.

Risk Exposures:

The Company is exposed to various risks in providing the above benefit which are as follows:

Interest Rate risk: The plan exposes the Company to the risk 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).

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity 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.

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.

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

Regulatory risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as
amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the
maximum limit on gratuity of ' 20,00,000).

The Company's pending litigations comprise of proceedings pending with various direct tax, indirect tax and other authorities.
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the
outcome of these proceedings to have a materially adverse effect on its financial statements.

(a) In January 2014, the National Pharmaceutical Pricing Authority (NPPA) issued a demand notice of ' 12.24 Crs as overcharging
liability of product "Doxovent 400 mg tab" for the period February 2010 to May 2013. The notice also envisaged a payment of
' 3.33 Crs towards interest @15% p.a. on the overcharged amount up to 31 January, 2014. The Company had filed a petition
under Article 32 with the Hon'ble Supreme Court of India (Hon'ble Court), challenging the issue of the above mentioned
demand notice on various grounds. This petition was tagged along with other petitions filed by other pharmaceutical
companies, pending before Hon'ble Court relating to the inclusion criteria of certain drugs including "Theophylline" in the
schedule of the DPCO, 1995. The Hon'ble Court passed an ad-interim order stating that no coercive steps be taken against
the Company towards the said demand. Whilst the matter was pending before the Hon'ble Supreme Court, in October 2015,

NPPA issued a fresh demand notice of ' 12.24 Crs as overcharging liability and ' 6.39 Crs as interest thereon calculated upto
30 September, 2015 to which the Company has responded stating that the matter was sub-judice. On 20 July, 2016 Hon'ble
Supreme Court heard the Company's petition and ordered the petition to be transferred back to Hon'ble Delhi High Court
to be heard on merits subject to deposit of 50% of the overcharged claimed amount. The Company has deposited ' 6.12
Crs (50% of the overcharged claimed amount). The pleadings have been completed and matter is pending for final hearing
before Hon'ble Delhi High Court.

(b) In October 2019, National Pharmaceutical Pricing Authority (NPPA) issued a Show Cause Notice alleging that the Company
had violated DPCO 2013 by self-invoking Para 32 in respect of its product Remogliflozin Etabonate Metformin by not
seeking approval for exemption from the Government. Although the Company has responded to the Show cause notice, on

2 January, 2020, NPPA issued a letter seeking production of documents / records under Para 29. The Company challenged
the decision of NPPA by filing a writ petition before Hon'ble Delhi High Court. In January 2020, Hon'ble Delhi High Court
was pleased to note NPPA's submission that without prejudice to the rights of the parties, NPPA will grant a hearing to the
Company, to decide on the Company's entitlement under paragraph 32 of the DPCO, 2013 and dispose of the petition,
with a noting that in view of the personal hearing, the impugned orders will not be given effect to. Although NPPA granted
the Company personal hearing, it issued a ceiling price notification in March 2020 notifying the price of Remogliflozin
Etabonate Metformin Hydrochloride without deciding the entitlement under paragraph 32 of the DPCO, 2013. The
Company thereafter challenged various orders passed by NPPA by filing a fresh writ petition. After hearing both Parties,
Hon'ble Delhi High Court was pleased to grant interim relief that no coercive action, based on the Impugned Orders dated

3 March, 2020 and 20 March, 2020, be taken against Company. The matter is currently sub-judice.

(c) The Company launched two fixed dose combinations (FDCs)- (i) Remogliflozin Etabonate 100 mg Vildagliptin 50 mg
Metformin Hydrochloride 500 mg and (ii) Remogliflozin Etabonate 100 mg Vildagliptin 50 mg Metformin Hydrochloride
1000 mg under the brand name Remo MV during October 2021. The Company provided intimation of launch to NPPA on
13 October, 2021 in compliance with para 32 of DPCO 2013. NPPA responded to Company's intimation that para 32 cannot
be self-invoked and that prior approval of NPPA is required. The Company sent its counter reply stating that para 32 does
not contemplate an approval, what is required is a mere intimation along with DCGI approval for the new drug and valid
patent. It was also highlighted by the Company that similar issue is pending for consideration of the Hon'ble Delhi High
Court in W.P.(C) 3831/2020. However on 04 March, 2023 the Multidisciplinary Committee of experts of NPPA recommended
the retail price of the aforesaid FDCs @ ' 8.76 per tablet and ' 9.06 per tablet respectively. Pursuant thereto and in line with
the recommendation NPPA issued notification dated 26 March, 2024 fixing the ceiling price. The Company has filed a writ
petition challenging the fixation of ceiling price on the ground that the aforesaid FDCs are covered under para 32 of DPCO,
2013 and that they are exempt from price control. Vide order dated 09.01.2025 Hon'ble Delhi High Court was pleased to
grant interim relief that no coercive steps shall be taken against Glenmark till the next date of hearing. The petition is kept
for final hearing.

(d) On a complaint by a stockiest with the Competition Commission of India ("CCI") in July 2015 against pharma co.s (including
the Company and its C&F agent) and the Trade associations, alleging refusal to supply medicines to it in spite of having
all valid licenses and documents, CCI ordered the Director General ("DG") to investigate and submit a report. CCI clubbed
this matter with other matters on a similar complaint against other pharmaceutical co.s and local Trade associations. On
submission of DG's report, CCI issued notices to the Company and some of its employees to submit their objections to the
said Report. Despite having contested DG's claim, CCI in its order has found the Company and concerned employees guilty
of having contravened provision 3(1) of the Competition Act, 2002 and has levied penalty under the Act. The Company
and the concerned employees have appealed the said Order at National Company Law Tribunal ("NCLAT"). The appeals is
pending for final hearing.

(e) An Information was filed by Mr. Kailash Gupta (President- All India Chemists and Distributors Federations) on 19.01.2012
against Glenmark and others alleging refusal / withholding of supply of products for want of NOC from AIOCD. Pursuant
to the information, Competition Commission of India (CCI) vide its order dated 07.02.2012 directed the Director General
("DG") to investigate and submit a report. DG conducted the investigation and vide its investigation report dated 03.04.2024
concluded that Glenmark withheld the supply to Shri Kesari Nandan Pharma, Amritsar. Glenmark has filed its detailed reply.
The pleadings and hearing have been concluded in the matter and the same is reserved for orders.

(f) In response to FDA action on Zantac and its generic equivalent (ranitidine) in late 2019 and early 2020, lawsuits were filed
in various jurisdictions against brand-name and generic manufacturers, distributors, and retailers of Zantac and ranitidine,
a number of which were consolidated in a Multidistrict Litigation (MDL) in the Southern District of Florida. Plaintiffs in all
of the lawsuits allege that ranitidine potentially contains a probable human carcinogen, N-Nitrosodimethylamine (NDMA),
that they have developed or will develop cancer as a result of their ingestion of ranitidine, and/or that they were otherwise
injured. Glenmark Pharmaceuticals Ltd. (GPL) and Glenmark Pharmaceuticals Inc., USA (GPI) were named in the MDL but
all claims against them were dismissed in June 2021 on the basis of federal pre-emption. Plaintiffs are appealing those

dismissals in the United States Court of Appeals for the Eleventh Circuit, and those appeals remain pending. In addition
to the MDL, GPI has also been named in several non-MDL cases that are proceeding in state court (California, Illinois, New
Mexico, New York, and Pennsylvania). GPL and GPI secured dismissals of all cases in Illinois and New York as well as many
of the claims in Pennsylvania. The California cases settled for $1.184 Mn. in November 2024. The remaining cases are in the
early stages. GPL and GPI will continue to defend these cases vigorously.

(g) From time to time the Company and its certain subsidiaries are involved in various intellectual property claims and other
legal proceedings, which are considered normal to its business. Some of these litigations have been resolved through
settlement agreements with the plaintiffs.

i. A multiple putative class and individual actions were filed in 2018 by purchasers of branded Zetia and generic Zetia
(ezetimibe) against Glenmark Pharmaceuticals Ltd (GPL) and its U.S. subsidiary Glenmark Pharmaceuticals Inc., USA
(GPI) before the United States District Court for the Eastern District of Virginia seeking relief under the US antitrust
laws. The Plaintiffs allege that GPL, GPI, and Merck & Co Inc. (Merck) violated the federal and state antitrust laws
by entering into a so-called reverse payment patent settlement agreement in Hatch-Waxman patent litigation in
May 2010 related to Merck's branded Zetia product. GPL and GPI arrived at a settlement with Three Plaintiff Groups
collectively representing all of the claims against GPL, GPI and Merck in relation to multiple antitrust and consumer
protection lawsuits, including a class action, consolidated in the Eastern District of Virginia, US (the "Court"). The
settlements made clear that they are commercial settlements and not on the basis of GPL and/or GPI having conceded
or admitted any liability, offence, wrongdoing or illegality. Three opt-out cases (in California and New Jersey) were
settled for $7 Mn. in February 2025 with no admission of liability. The fourth opt-out case (in Minnesota) was settled
for $11 Mn. in November 2025 with no admission of liability.

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for as at
31 March 2026 aggregate ' 1,496.09 (2025 - ' 1,097.13)

(b) Estimated amount of contracts remaining to be executed on other than capital account, net of advances, not provided
for as at 31 March 2026 aggregate ' 6,124.02 (2025 - ' 10,263.91)

NOTE 31 - LEASES
Company as lessee

The Company's leased assets primarily consist of leases for office premises and godowns. Leases of office premises and godowns
generally have lease term between 2 to 12 years. The Company has applied low value exemption for leases laptops, lease
lines, furniture and equipment and accordingly are excluded from Ind AS 116. The leases includes non cancellable periods and
renewable option at the discretion of lessee which has been taken into consideration for determination of lease term.

The weighted average incremental borrowing rate applied to lease liabilities recognised was 10% - 10.40% p.a.

There are several lease agreements with extension and termination options, management exercises significant judgement in
determining whether these extension and termination options are reasonably certain to be exercised. Since it is reasonably
certain to exercise extension option and not to exercise termination option, the Company has opted to include such extended
term and ignore termination option in determination of lease term.

Fair value hierarchy:

The fair value of financial assets and liabilities as referred above have been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical
assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: Quoted prices for financial assets in an active market amounting to ' 1.30 (2025 - ' 1.05)

• Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs

• Level 3: Inputs which are not based on observable market data
Investment in subsidiaries are carried at cost not included above.

Trade receivables comprise amounts receivable from the sale of goods and services.

The management considers that the carrying amount of trade and other receivables approximates their fair value.

Bank balances and cash comprise cash and short-term deposits held by the Company. The carrying amount of these assets
approximates their fair value.

Trade and other payables principally comprise amounts outstanding for trade purchases and on-going costs. The management
considers that the carrying amount of trade payables approximates to their fair value.

The Bonds are interest bearing instruments with an embedded derivative instrument of conversion option. The instrument's
value predominately consist of liability measured at amortised cost; the embedded derivative is measured at FVTPL .

NOTE 34 - NOTE ON EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY

The information regarding projects undertaken and expenses incurred on CSR activities during the year ended 31 March 2026
is as follows:

i Gross amount required to be spent by the Company during the year as per provisions of section 135 of the Companies Act,
2013 - ' 335.51 (2025 - ' 307.15)

ii Amount spent during the year on CSR by way of contribution to the trusts and projects undertaken (excess amount spent
is carried forward):

NOTE 35- RISK MANAGEMENT OBJECTIVES AND POLICIES

The Risk Management Committee of the Board is entrusted with the responsibility to assist the Board in overseeing and approving
the Company's risk management framework.

The Company is exposed to a variety of financial risks which results from the Company's operating and investing activities. The
Company focuses on actively securing its short to medium term cash flows by minimising the exposure to financial markets.

The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options.

Financial assets that potentially subject the Company to concentrations of credit risk consist principally of cash equivalents,
accounts receivables, other receivables, investment securities and deposits. By their nature, all such financial instruments involve
risk including the credit risk of non-performance by counter parties.

The Company's cash equivalents and deposits are invested with banks.

The Company's trade and other receivables are actively monitored to review credit worthiness of the customers to whom credit
terms are granted and also avoid significant concentrations of credit risks.

The Company's interest-rate risk arises from long-term borrowings. Borrowings obtained at variable rates expose the Company
to cash flow interest-rate risk. Borrowings issued at fixed rates expose the Company to fair value interest-rate risk.

Foreign currency sensitivity

The foreign currency sensitivity analysis has been performed in relation to US Dollar (USD), Euro (EUR) and Russian Ruble (RUB).

US Dollar conversion rate was ' 85.56 at the beginning of the year and scaled to a high of ' 94.57 and to low of ' 84.25. The closing
rate is ' 93.85. Considering the volatility in direction of strengthening dollar upto 10% , the sensitivity analysis has been disclosed
at 10% movements on strengthening and weakening effect for presenting comparable movement due to currency fluctuations.

Interest rate sensitivity

The Company's policy is to minimise interest rate cash flow risk exposures on long-term borrowings. The Company has no long
term borrowings in USD. Since, there are no long term borrowings in USD, there are no element of interest rate risk associated
with this and hence interest rate sensitivity analysis has not been performed.

The Company has taken several short term borrowings on fixed rate of interest. Since, there is no interest rate risk associated
with such fixed rate loans; an interest rate sensitivity analysis has not been performed.

The bank deposits are placed on fixed rate of interest of approximately 5.5% to 6.25%. As the interest rate does not vary unless
such deposits are withdrawn and renewed, sensitivity analysis is not performed.

The Company has outstanding borrowings of USD Nil (2025 - Nil) which are linked to SOFR/Benchmark prime lending rate (BPLR).
Increases by 25 basis points then such increase shall have the following impact on:

Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has always been
managed by each business segment 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. In accordance with Ind AS
109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external
and internal credit risk factors such as default risk of industry, credit default swap quotes, credit ratings from international credit
rating agencies and historical experience for customers.

The Company computes expected credit loss allowance based on a provision matrix. The provision matrix is prepared based
on historically observed default rates over the expected life of trade receivables and is adjusted for forward-looking estimates.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the
Company, and incorporates this information into its credit risk controls. The Company's policy is to deal only with creditworthy
counterparties.

The Company's management considers that all the above financial assets that are not impaired for each of the reporting dates
and are of good credit quality, including those that are past due. None of the Company's financial assets are secured by collateral
or other credit enhancements.

In respect of trade and other receivables, the Company's credit risk exposure towards any single counterparty or any group of
counterparties having similar characteristics is considered to be negligible. The credit risk for liquid funds and other short-term
financial assets is considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Price risk

The price risk is the risk arising from investments held by the Company and classified in the balance sheet either as fair value
through other comprehensive income or at fair value through profit or loss.

The Company's equity investments are mainly strategic in nature and are generally held on a long term basis.

Liquidity risk analysis

The Company manages its liquidity needs by carefully monitoring scheduled debt servicing payments for long-term financial
liabilities as well as cash-outflows due in day-to-day business. Liquidity needs are monitored in various time bands, on a day-to¬
day and week-to-week basis, as well as on the basis of a rolling 30-day projection. Long-term liquidity needs for a 180-day and a
360-day lookout period are identified monthly.

The Company maintains cash and marketable securities to meet its liquidity requirements for up to 30-day periods. Funding in
regards to long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities and the ability
to sell long-term financial assets.

NOTE 36 - CAPITAL MANAGEMENT POLICIES AND PROCEDURES

The Company objectives when managing capital are to safeguard their ability to continue as a going concern so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal structure to reduce
the cost of capital. In order to maintain or adjust the Capital structure, the Company may adjust the amounts of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell new assets to reduce debt.

livalent. Total 'equity' as shown in the balance sheet.

31 March 2026 31 March 2025

- 6,988.20

2,918.31 1,314.51

(2,918.31) 5,673.69

241,503.24 245,039.56

-1.21% 2.32%

(ii) Dividends not recognised at the end of the reporting period.

In addition to the above dividends, since year end the Board of Directors have recommended the payment of a final dividend
of ' 2.50 (2025 - ' 2.50) per fully paid up equity share. This proposed dividend is subject to the approval of shareholders in
the ensuing annual general meeting.

NOTE 37 - RECLASSIFICATION

Certain prior year amounts have been reclassified for consistency with the current year presentation. As a result, certain line
items have been amended in the financial statements. These reclassifications had no effect on the reported results of operations.
Comparative figures have been adjusted to conform to the current year's presentation. The impact of such reclassification is not
material to the financial statements.

NOTE 38 - EXCEPTIONAL ITEMS

31 March 2026

The Company and its subsidiary were named in multiple antitrust and consumer protection lawsuits, including class actions,
consolidated in the Eastern District of Pennsylvania, U.S. These relate to industry-wide allegations concerning price-fixing,
market allocation, and related anticompetitive conduct. Plaintiffs include putative classes of direct purchasers, end payers, and
indirect purchasers of generic drugs, as well as numerous private, direct-action plaintiffs.

Glenmark has agreed to enter into a settlement with the putative direct purchaser class and the state attorney general. The
settlement is subject to approval by the court overseeing the litigation. The settlement makes clear that Glenmark denies each
and everyone of its allegation against it and the settlement is not on the basis of Glenmark having considered or admitted any
liability or illegality. In view of the above the Company has made a provision for the estimated settlement amount of ' 3,232.32
and ' 2,780.70 for putative direct purchaser and the state attorney general respectively and charged the same to current year
Profit and loss account as an exceptional item. The matter continues to be under litigation with the other parties.

On 14 November 2025, the Company and its US Subsidiary (Glenmark Pharmaceuticals Inc., USA) arrived at a settlement with
United Healthcare Services, Inc. (District of Minnesota) Last En-Payor Plaintiff for a ' 976 representing all of their claims against
GPI and the Company. The settlement made clear that it is a commercial settlement and not on the basis of the Company having
conceded or admitted any liability, offence, wrongdoing or illegality. In view of the above-mentioned, the Company accounted
for the settlement in the Profit and loss account alongwith the other associated legal and other cost and has presented the same
as exceptional item.

Other exceptional items primarily comprise of provision on certain inventories of ' 3,687.07, post GST 2.0 and consequent change
in Inventory management model, receivables and other current assets amounting to ' 4,807.08, and legal cost related to above
litigation matters amounting to ' 1,394.68.

Effective 21 November, 2025, The Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes collectively referred to as the 'New Labour Codes'. The Company has assessed the
financial implications of these changes and recognized ' 1,130.73 in the standalone financial results towards employee benefits
on the best estimate basis. The Company continues to monitor the developments pertaining to the New Labour Codes and the
impact of these will be accounted in accordance with applicable accounting standards as and when these developments are
known and applicable.

31 March 2025

The Company had earlier reported that the Company and its US subsidiary (Glenmark Pharmaceuticals Inc., USA) had arrived
at a settlement with three Plaintiff Groups collectively representing all of the claims against the Company and Merck in relation
to multiple antitrust and consumer protection lawsuits, including a class action, consolidated in the Eastern District of Virginia,
U.S. (the "Court") for a total amount of US$ 87.5 million (US Dollar Eighty Seven Point Five million), payable over two financial
years. Four End-Payor Plaintiffs, Humana Inc. (District of New Jersey), Centene Corporation, WellCare Health Plans, Inc., New
York Quality Healthcare Corporation dba Fidelis Care, and Health Net, LLC (collectively "Centene") (District of New Jersey), Kaiser
Foundation Health Plan, Inc. (Northern District of California), and United Healthcare Services, Inc. (District of Minnesota), opted
out of the 2023 settlements. The Company and its US subsidiary (GPI) arrived at a settlement, in February 2025, with Humana,
Centene, and Kaiser for a sum of US$ 7.0 million representing all of their claims against GPI and the Company. The settlement
Agreement required the amount to be paid by the Company one month post obtaining all necessary approvals. The settlements
made clear that it is a commercial settlements and not on the basis of the Company having conceded or admitted any liability,
offence, wrongdoing or illegality.

In view of the above, the Company has charged the same to profit and loss account the settlement amount along with other
associated legal cost for the case and others of ' 1,623.74 for the year ended 31 March 2025. Due to the non-recurring nature
of the provision, the Company has classified this provision as an exceptional item in the financial statements for the year ended
31 March 2025.

IGI, the innovation arm of the Company underwent restructuring during the year. This was done to optimise operations in line
with IGI's long-term vision. Accordingly, exceptional loss of ' 167.92 has been incurred for the year ended 31 March 2025 which
comprises of restructuring costs, severance payments, and other one-time costs.

(a) Earning available for debt service = Net Profit after taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of Fixed assets etc. /- adjustment of Exceptional items and
relevant tax expense

(b) Debt service = Interest & Lease Payments Scheduled Principal Repayments for the year

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(f) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Working capital = Current assets - Current liabilities.

(i) Earning before interest and taxes = Profit before exceptional items and tax Finance costs - Other Income

(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

(k) Return on investment = Gain on sale of investment / (Average investment x holding period)

(l) Return on investment = Change in fair value of quoted investment (except subsidiary) / (Average investment)

(m) Net Profit = Net profit after tax adjustment of Exceptional items and relevant tax expense

NOTE 40 - SEGMENT REPORTING

In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind AS financial
statements, and therefore, no separate disclosure on segment information is given in these financial statements.

NOTE 41 - OTHER STATUTORY INFORMATION

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the
Company for holding any benami property.

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

c) 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:-

i) 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

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

d) The Company does not have any transaction which is previously not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961 (such as, search
or survey or any other relevant provisions of the Income Tax Act, 1961).

e) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

f) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

g) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the
lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property,
plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

h) The Company does not have any transactions with companies which are struck off under section 248 of the Companies
Act, 2013 or section 560 of the Companies Act, 1956.

i) 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:

i) 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

ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

j) The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

k) The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related
parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on
demand, or without specifying any terms or period of repayment.

l) The Company has used accounting software for maintaining its books of account, which have a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except no audit trail has been enabled at the data base level for the primary software used for maintaining its books of
accounts, to log any direct data changes for the accounting software (SAP). The audit trail feature has not been tampered
with and being preserved by the Company as per the statutory requirements of record retention.

m) During the year ended 31 March 2026 (31 March 2025: None), no scheme of arrangement has been approved by the
Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.

NOTE 42 - NOTIFIED LABOUR CODES

Effective 21 November, 2025, The Government of India has consolidated multiple existing labour legislations into a unified
framework comprising four Labour Codes collectively referred to as the 'New Labour Codes'. The Company has assessed the
financial implications of these changes and recognized ' 1,130.73 in the standalone financial results towards employee benefits
on the best estimate basis. The Company continues to monitor the developments pertaining to the New Labour Codes and the
impact of these will be accounted in accordance with applicable accounting standards as and when these developments are
known and applicable.

NOTE 43 - SUBSEQUENT EVENTS

There are no other subsequent events that occurred after the reporting date.

NOTE 44 - AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31 March 2026 were approved by the Board of Directors on 29 May 2026.