The amount recognized as a provision is the best estimate of
the consideration required to settle the present obligation at
the reporting date, considering the risks and uncertainties
surrounding the obligation. When some or all the economic
benefits required to settle a provision are expected to be
recovered from a third party, the receivable is recognized as an
asset if it is virtually certain that reimbursement will be received,
and the amount of the receivable can be measured reliably.

A contract is considered to be onerous when the expected
economic benefits to be derived by the Company from the
contract are lower than the unavoidable cost of meeting its
obligations under the contract. The provision for an onerous
contract is measured at the present value of the lower of the
expected cost of terminating the contract and the expected net
cost of continuing with the contract. Before such a provision is
made, the Company recognizes any impairment loss on the
assets associated with that contract.

Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. If it is no longer
probable that the outflow of resources would be required to
settle the obligation, the provision is reversed.

49. Segment Reporting

i) Primary Segment (Business Segment)

The Company operates only in the business segment of
“Pharmaceuticals Products”, and in the opinion of the
management the inherent nature of activities in which it is
engaged are governed by the same set of risks and rewards.
As such the activities are identified as single segment in
accordance with the Indian Accounting Standard (Ind AS 108)
issued under Companies (Indian Accounting Standards) Rules,
2016 as amended up to date.

ii) Secondary Segment (By Geographical Segment)

48. Provisions

Accounting Policies

A provision is recognized if, as a result of a past event, the
Company has a present legal or constructive obligation that
can be estimated reliably, and it is probable that an outflow of
economic benefits will be required to settle the obligation. If the
effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a
pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. Where
discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

* Includes discontinued operations

In view of the interwoven/intermix nature of business and
manufacturing facility, other segmental information is not
ascertainable.

50. Other Borrowing Costs

Other Borrowing Costs include gain on account of foreign
exchange fluctuation (net) amounting to ' 13.51 million (Previous
Year ' 85.27 million), which includes impact relating to both
continuing and discontinued operations.

Accounting Policies

Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized. Other borrowing
costs are recognized as an expense in the period in which they
are incurred.

51. Leases

Operating leases are mainly in the nature of leasing office
premises with no restrictions and are renewable/cancellable at
mutual consent. There are no restrictions imposed by lease
arrangements. There are no sub leases. Lease payments
recognized in the Statement of Profit and Loss Account are
' 22.22 million (Previous Year ' 20.31 million), which includes
impact relating to both continuing and discontinued operations.

Accounting Policies

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

56. Related Party Disclosures

Related party disclosures as required under Indian Accounting
Standard (Ind AS 24) on “Related Party Disclosures” issued
under Companies (Indian Accounting Standards) Rule 2016,
as amended up to date, are given below: -
a) Relationship

i) Subsidiary Companies

• Neclife PT, Unipessoal LDA - Portugal (Inoperative during
the year)

• Avensis Exports Private Limited (w.e.f. 6^th March 2026)

ii) Kev Management Personnel

• Mr. Sanjiv Goyal, Chairman & Managing Director

• Mr. Puneet Sud, Whole-time Director (up to 31.05.2025)

• Mr. Surulichamy Senthilkumar, Whole-time Director (from
01.06.2025 till 09.11.2025)

• Mr. Surulichamy Senthilkumar, Non-Executive Director
(w.e.f. 10.11.2025)

• Mr. Amit Chadah, Chief Executive Officer (up to
10.11.2025)

• Mr. Sushil Kapoor, Chief Financial Officer

• Mr. Sushil Kapoor, Whole-time Director (w.e.f. 04.12.2025)

• Mr. Sanjaymohan Singh Rawat, Company Secretary

iii) Joint Ventures and Associates

• None

iv) Relatives of the Key Management Personnel*

• Mrs. Raman Goyal

v) Entities over which key management personnel/their
relatives are able to exercise significant influence*

• Nectar Lifesciences Charitable Foundation (CSR vehicle
of the company)

• With whom the Company had transactions during the year.

* The matters are subject to legal proceedings in the ordinary
course of business. In the opinion of the management, legal
proceedings for cases, when ultimately concluded, will not have
a material effect on the results of operation or financial position
of the company.

** MAT credit entitlement would be reduced by ' 508.19 million
(previous year ' 580.98 million), in case of adverse judgment
and ' 371.79 million (Previous year ' 299.00 million) will be
adjusted against the MAT credit entitlement already lapsed in
the books of accounts.

@Amount deposited under protest ' 25.64 million.

# Amount deposited under protest ' 0.52 million. In case demand
is confirmed, penalty up to equivalent amount may be imposed.

Interest and claims by customers, suppliers, lenders, and
employees may be payable as and when the outcome of the
related matters is finally determined and hence have not been
included above. Management based on legal advice and
historical trends, believes that no material liability will devolve
on the Company in respect of these matters.

Accounting Policies

A contingent liability is a possible obligation that arises from
past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation that
is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation.

A contingent liability also arises in extremely rare cases where
there is a liability that cannot be recognized because it cannot
be measured reliably. The Company does not recognise a
contingent liability but discloses its existence in the financial
statements unless the possibility of an outflow of resources
embodying economic benefits is remote. Contingent liabilities
and commitments are reviewed by the management at each
balance sheet date.

Contingent assets are neither recognized nor disclosed in the
financial statements. 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 recognized
in the period in which the change occurs.

58. Disclosure of Transactions with Struck off Companies:

As per the information available with the company, the Company
did not have any material transactions with companies struck
off under Section 248 of the Companies Act, 2013 or Section
560 of Companies Act, 1956 during the financial year.

59. Derivatives
Currency derivatives

The Company uses foreign currency forward contracts and
currency options to hedge its risks associated with foreign
currency fluctuations relating to certain firm commitments and
forecasted transactions. The use of foreign currency forward
contracts and currency options is governed by the Company’s
strategy. The Company does not use forward contracts and
currency options for speculative purposes.

60. Capital Management:

For the purpose of the Company’s capital management, capital
includes issued equity capital, and all other equity reserves
attributable to the equity holders of the Company. The primary
objective of the Company’s capital management is to safeguard
the Company’s ability to remain as a going concern and
maximize the shareholder value.

The Company manages its capital structure and makes
adjustments in light of changes in economic conditions, annual
operating plans and long-term and other strategic investment
plans. In order to maintain or adjust the capital structure, the
Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders or issue new shares.
The current capital structure of the Company is equity based
with no financing through borrowings except through leasing.
The Company is not subject to any externally imposed capital
requirements.

No changes were made in the objectives, policies or processes
for managing capital during the year ended March 31, 2026
and March 31,2025.

61. Credit Rating

During the current financial year, the Company has fully repaid
all its fund-based and non-fund-based borrowings and no credit
facilities remained outstanding as at the reporting date.
Accordingly, the Company has not obtained / renewed any credit
rating during the year.

Previous year, the Company had obtained credit ratings from
CARE Ratings Limited in respect of its banking and credit
facilities, the details of which were as under:

62. Additional Regulatory Disclosure Requirements

No transactions to report against the following disclosure
requirements as notified by MCA pursuant to amended Schedule
III:

a. Crypto Currency or Virtual Currency

b. Benami Property held under Prohibition of Benami Property
Transactions Act, 1988 and rules made thereunder

c. Registration of charges or satisfaction with Registrar of
Companies

d. Compliance with number of layers of companies

e. Relating to borrowed funds:

i. Willful defaulter

ii. Utilization of borrowed funds & share premium

iii. Borrowings obtained on the basis of security of current
assets

iv. Discrepancy in utilization of borrowings

v. Current maturity of long-term borrowings

f. Title deeds of immoveable properties not held in name of
company.

g. Relationship with Struck off Companies.

h. Revaluation of property, Plant and equipment as no such
revaluation taken place during the year.

* Ratios disclosed pursuant to Schedule III to the Companies Act, 2013 are not ascertainable/meaningful for the current year due to the
slump sale/business transfer undertaken during the year. Pursuant to such transaction, substantial revenue, purchases and other
related financial information have been classified under discontinued operations in accordance with applicable Ind AS requirements.
Further, borrowings of the Company have been substantially repaid during the year.

1. Pursuant to categorization of non-current assets as “Assets held for sale”, the current assets increased which resulted in improvement
of Current Ratio.

2. Return on Investment (ROI) is negative primarily due to losses incurred on investments in mutual fund instruments during the year owing
to volatility in capital markets and geopolitical developments, recognized in accordance with Ind AS 109 - Financial Instruments.

64. The Company has re-grouped the previous year’s figures to confirm the current year’s classification.