m. Provisions, contingent liabilities and
contingent assets

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of obligation.
When the Company expects some or all of a
provision to be reimbursed, for example, under
an insurance contract, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is certain. The expense relating to a
provision is presented in the statement of profit and
loss net of any reimbursement.

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 recognised
as a finance cost.

Restructuring

A provision for restructuring is recognised when the
Company has a detailed formal restructuring plan
and has raised a valid expectation in those affected
that it will carry out the restructuring by starting
to implement the plan or announcing its main
features to those affected by it. The measurement
of a restructuring provision includes only the
direct expenditure arising from the restructuring,
which are those amounts that are both necessarily
entailed by the restructuring and not associated
with the ongoing activities of the entity.

Onerous contracts

Present obligations arising under onerous contracts
are recognised and measured as provisions. An
onerous contract is considered to exist where
the Company has a contract under which the
unavoidable costs of meeting the obligations under
the contract exceed the economic benefit expected
to be received from the contract.

Contingent liabilities and contingent assets

Contingent liability is disclosed for,

(i) Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company, or

(ii) Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the amount
of the obligation cannot be made.

Contingent assets are not recognised in the
financial statements. A contingent asset is disclosed
where an inflow of economic benefits is probable.
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.

n. Revenue
Sale of goods

Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those goods
or services. The Company has generally concluded
that it is the principal in its revenue arrangements,
since it is the primary obligor in all of its revenue
arrangement, as it has pricing latitude and is
exposed to inventory and credit risks. Revenue
is stated net of goods and service tax and net of
returns, chargebacks, rebates and other similar
allowances. These are calculated on the basis of
historical experience and the specific terms in the
individual contracts.

In determining the transaction price, the Company
considers the effects of variable consideration,
the existence of significant financing components,
non-cash consideration, and consideration payable
to the customer (if any). The Company estimates
variable consideration at contract inception until it
is highly probable that a significant revenue reversal
in the amount of cumulative revenue recognised
will not occur when the associated uncertainty with
the variable consideration is subsequently resolved.

Profit Sharing Revenues

The Company from time to time enters into
arrangements for the sale of its products in certain
markets. Under such arrangements, the Company
sells its products to the business partners at a base
purchase price agreed upon in the arrangement
and is also entitled to a profit share which is over
and above the base purchase price. The profit share

is typically dependent on the ultimate net sale
proceeds or net profits, subject to any reductions
or adjustments that are required by the terms of
the arrangement.

Revenue in an amount equal to the base purchase
price is recognised in these transactions upon
delivery of products to the business partners. An
additional amount representing the profit share
component is recognised as revenue only to the
extent that it is highly probable that a significant
reversal will not occur.

Out-licensing arrangements

Revenues include amounts derived from product
out-licensing agreements. These arrangements
typically consist of an initial up-front payment on
inception of the license and subsequent payments
dependent on achieving certain milestones in
accordance with the terms prescribed in the
agreement. Non-refundable up-front license fees
received in connection with product out-licensing
agreements are deferred and recognised over
the period in which the Company has continuing
performance obligations. Milestone payments
which are contingent on achieving certain clinical
milestones are recognised as revenues either on
achievement of such milestones, if the milestones
are considered substantive, or over the period the
Company has continuing performance obligations,
if the milestones are not considered substantive.

Sales returns

The Company accounts for sales returns accrual
by recording an allowance for sales returns
concurrent with the recognition of revenue at the
time of a product sale. This allowance is based
on the Company's estimate of expected sales
returns. With respect to established products,
the Company considers its historical experience
of sales returns, levels of inventory in the
distribution channel, estimated shelf life, product
discontinuances, price changes of competitive
products, and the introduction of competitive
new products, to the extent each of these factors
impact the Company's business and markets.

With respect to new products introduced by the
Company, such products have historically been
either extensions of an existing line of product
where the Company has historical experience or in
therapeutic categories where established products
exist and are sold either by the Company or the
Company's competitors.

Contract balances
Contract assets

A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Company performs by transferring
goods or services to a customer before the
customer pays consideration or before payment is
due, a contract asset is recognised for the earned
consideration that is conditional. Contract assets
are subject to impairment assessment.

Trade receivables

A receivable represents the Company's right to an
amount of consideration that is unconditional (i.e.,
only the passage of time is required before payment
of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which the
Company has received consideration (or an amount
of consideration is due) from the customer. If a
customer pays consideration before the Company
transfers goods or services to the customer, a
contract liability is recognised when the payment is
made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when
the Company performs under the contract

Rendering of services

Revenue from services rendered is recognised in
the statement of profit and loss as the underlying
services are performed. Upfront non-refundable
payments received are deferred and recognised as
revenue over the expected period over which the
related services are expected to be performed.

Royalties

Royalty revenue is recognised on an accrual basis
in accordance with the substance of the relevant
agreement (provided that it is probable that
economic benefits will flow to the Company and
the amount of revenue can be measured reliably).
Royalty arrangements that are based on production,
sales and other measures are recognised by
reference to the underlying arrangement.

o. Dividend and interest income

Dividend income is recognised when the Company's
right to receive the payment is established, which is
generally when shareholders approve the dividend.

Interest income from a financial asset is recognised
when it is probable that the economic benefits will
flow to the Company and the amount of income

can be measured reliably. Interest income is accrued
on a time basis, by reference to the principal
outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts
estimated future cash receipts through the
expected life of the financial asset to that asset's
net carrying amount on initial recognition.

p. Government grants

The Company recognises government grants
only when there is reasonable assurance that
the conditions attached to them will be complied
with, and the grants will be received. When the
grant relates to an expense item, it is recognised
as income on a systematic basis over the periods
that the related costs, for which it is intended to
compensate, are expensed. When the grant relates
to an asset, the Company deducts such grant
amount from the carrying amount of the asset.

q. Employee benefits
Defined benefit plans

The Company operates a defined benefit gratuity
plan which requires contribution to be made to a
separately administered fund.

The liability in respect of defined benefit plans is
calculated using the projected unit credit method
with actuarial valuations being carried out at
the end of each annual reporting period. The
present value of the defined benefit obligation is
determined by discounting the estimated future
cash outflows by reference to market yields at
the end of the reporting period on government
bonds. The currency and term of the government
bonds shall be consistent with the currency and
estimated term of the post-employment benefit
obligations. The current service cost of the defined
benefit plan, recognised in the statement of profit
and loss as employee benefits expense, reflects the
increase in the defined benefit obligation resulting
from employee service in the current year, benefit
changes, curtailments and settlements. Past service
costs are recognised in the statement of profit and
loss in the period of a plan amendment. The net
interest cost is calculated by applying the discount
rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the
statement of profit and loss. Actuarial gains and
losses arising from experience adjustments and
changes in actuarial assumptions are charged or

credited to OCI in the period in which they arise
and is reflected immediately in retained earnings
and is not reclassified to profit or loss.

Termination benefits

Termination benefits are recognised as an expense
in the statement of profit and loss when the
Company is demonstrably committed, without
realistic possibility of withdrawal, to a formal
detailed plan to either terminate employment
before the normal retirement date, or to provide
termination benefits as a result of an offer made
to encourage voluntary redundancy. Termination
benefits for voluntary redundancies are recognised
as an expense in the statement of profit and loss
if the Company has made an offer encouraging
voluntary redundancy, it is probable that the offer
will be accepted, and the number of acceptances
can be estimated reliably.

Short-term and Other long-term
employee benefits

Accumulated leave, which is expected to be utilised
within the next 12 months, is treated as short-term
employee benefit. The Company measures the
expected cost of such absences as the additional
amount that it expects to pay as a result of the
unused entitlement that has accumulated at the
reporting date.

The Company treats accumulated leave expected to
be carried forward beyond twelve months, as long¬
term employee benefit for measurement purposes.
Such long-term compensated absences are
provided for based on the actuarial valuation using
the projected unit credit method at the year-end.
Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred.

The Company's net obligation in respect of other
long term employee benefits is the amount of
future benefit that employees have earned in
return for their service in the current and previous
periods. That benefit is discounted to determine its
present value.

Defined contribution plans

The Company's contributions to defined
contribution plans are recognised as an expense
as and when the services are received from the
employees entitling them to the contributions. The
Company does not have any obligation other than
the contribution made.

r. Income tax

Income tax expense consists of current and
deferred tax. Income tax expense is recognised in
profit or loss except to the extent that it relates
to items recognised in OCI or directly in equity,
in which case it is recognised in OCI or directly in
equity respectively. Current tax is the expected
tax payable on the taxable profit for the year, using
tax rates enacted or substantively enacted by the
end of the reporting period, and any adjustment
to tax payable in respect of previous years.

Current tax assets and tax liabilities are offset
where the Company has a legally enforceable
right to offset and intends either to settle on a
net basis, or to realise the asset and settle the
liability simultaneously.

Deferred tax is recognised on temporary
differences between the carrying amounts of assets
and liabilities in the financial statements and the
corresponding tax bases used in the computation
of taxable profit. Deferred tax is not recognised for
the temporary differences that arise on the initial
recognition of assets or liabilities in a transaction
that is not a business combination and that affects
neither accounting nor taxable profits and taxable
temporary differences arising upon the initial
recognition of goodwill.

Deferred tax is measured at the tax rates that
are expected to be applied to the temporary
differences when they reverse, based on the laws
that have been enacted or substantively enacted
by the end of the reporting period. Deferred tax
assets and liabilities are offset if there is a legally
enforceable right to set off corresponding current
tax assets against current tax liabilities and the
deferred tax assets and deferred tax liabilities relate
to income taxes levied by the same tax authority on
the Company.

The Company recognises a deferred tax asset
arising from unused tax losses or tax credits only
to the extent that the entity has sufficient taxable
temporary differences or there is convincing other
evidence that sufficient taxable profit will be
available against which the unused tax losses or
unused tax credits can be utilised by the entity.

A deferred tax asset is recognised to the extent
that it is probable that future taxable profits will be
available against which the temporary difference
can be utilised except:

• When the deferred tax asset relating to the
deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects
neither the accounting profit nor taxable profit
or loss and does not give rise to equal taxable
and deductible temporary differences.

• In respect of deductible temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable
future and taxable profit will be available
against which the temporary differences can
be utilised.

Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no
longer probable that the related tax benefit will be
realised. Withholding tax arising out of payment of
dividends to shareholders under the Indian Income
tax regulations is not considered as tax expense for
the Company and all such taxes are recognised in
the statement of changes in equity as part of the
associated dividend payment.

Deferred tax liabilities are recognised for all taxable
temporary differences, except:

• When the deferred tax liability arises from the
initial recognition of goodwill or an asset or
liability in a transaction that is not a business
combination and, at the time of the transaction,
affects neither the accounting profit nor taxable
profit or loss and does not give rise to equal
taxable and deductible temporary differences

• In respect of taxable temporary differences
associated with investments in subsidiaries,
associates and interests in joint ventures, when
the timing of the reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse
in the foreseeable future

Minimum Alternate Tax ('MAT') credit is recognised
as deferred tax asset only when and to the extent
there is convincing evidence that the Company
will pay normal income tax during the period for
which the MAT credit can be carried forward for
set-off against the normal tax liability. MAT credit
recognised as an asset is reviewed at each Balance
Sheet date and written down to the extent the
aforesaid convincing evidence no longer exists.

Accruals for uncertain tax positions require
management to make judgements of potential
exposures. Accruals for uncertain tax positions are
measured using either the most likely amount or
the expected value amount depending on which
method the entity expects to better predict the
resolution of the uncertainty. Tax benefits are not
recognised unless the management based upon its
interpretation of applicable laws and regulations
and the expectation of how the tax authority will
resolve the matter concludes that such benefits will
be accepted by the authorities. Once considered
probable of not being accepted, management
reviews each material tax benefit and reflects the
effect of the uncertainty in determining the related
taxable amounts.

s. Exceptional items

Exceptional items refer to items of income or
expense, including tax items, within the statement
of profit and loss from ordinary activities which
are non-recurring and are of such size, nature
or incidence that their separate disclosure is
considered necessary to explain the performance of
the Company.

t. 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. MCA has issued
following amendments:

Amendment to Ind AS 1 'Presentation of Financial
Statements'- Classification of Liabilities as current
or non-current and non-current liabilities with
covenants. The amendment includes specific
provisions that will take effect for reporting
periods beginning on or after April 01, 2026,
retrospectively, as outlined below:

a) Breach of material covenant for long-term loan
arrangement on or before end of reporting
period with effect that liability becomes
payable on demand as on reporting date, then
it shall be classified as current liability, if lender
agreed after reporting period and before
approval of standalone financial statements

to not demand payment as a consequence
of breach.

b) Classify as non-current liability, if lender
agreed by end of reporting period to provide
grace period ending at least 12 months after
reporting period within which entity can
rectify the breach provided lender does not
demand immediate repayment.

c) Disclose information about the timing of
settlement to understand the impact of the
liability on the standalone financial statements.

The Company does not expect this amendment
to have an impact on its operations or standalone
financial statements.

(i) Buildings include ? 8,620 (As at March 31, 2025: ? 8,620) towards cost of shares in a co-operative housing society and also includes ? 1.1
Million (As at March 31, 2025: ? 1.1 Million) and ? 1,133.0 Million (As at March 31, 2025: ? 1,133.0 Million) towards cost of non-convertible
preference shares of face value of ? 10/- each and compulsorily convertible debentures of face value of ? 10,000/- each in a Company
respectively entitling the right of occupancy and use of premises and also includes ? 4.5 Million (March 31, 2025: ? 4.5 Million) towards cost
of flats not registered in the name of the Company but is entitled to right of use and occupancy.

(ii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(iii) The above table includes certain premises and plant and machinery given under operating lease or leave and license agreements having gross
carrying value of ? 22.7 Million (March 31, 2025: ? 205.7 Million) and accumulated depreciation of ? 11.7 Million (March 31, 2025: ? 37.4
Million). The depreciation charge for the year in relation to them is ? 0.3 Million (March 31, 2025: ? 3.3 Million).

(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) Refer Note 54 (1)

(iii) The recoverable amount of Goodwill has been determined based on value in use calculations which uses cash flow projections covering
generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and
Management's expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current
market assessments of time value of money. The average growth rate used in extrapolating cash flows beyond the planning period was 5.0% for
the years ended March 31, 2026 and 5.0% March 31, 2025. Discount rate reflects the current market assessment of the risks specific to a CGU
or group of CGUs. The discount rate is estimated on the weighted average cost of capital for respective CGU or group of CGUs. Discount rate
used was 9.2% for the years ended March 31, 2026 and 8.9% March 31, 2025. The management believes that any reasonable possible change

in key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate
recoverable amount of the cash generating unit.

Footnotes

(i) Rights, preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of ? 1 per share, rank pari
passu in all respects including voting rights and entitlement to dividend.

(ii) Change in shareholding during the year represents the sale of 15,000 shares by Kumud S. Shanghvi.

(iii) Authorised capital is changed with effect from November 22, 2025, being the date of filing Form INC-28 with the Registrar of Companies
pursuant to the Composite Scheme of Arrangement involving amalgamation of Wholly-owned subsidiary companies, viz. Sun Pharmaceutical
Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade Private
Limited, Skisen Labs Private Limited (“Transferor Companies”) with Sun Pharmaceutical Industries Limited (“Transferee Company” or “the
Company”), as approved by the Hon'ble National Company Law Tribunal Ahmedabad Bench vide its Order dated October 07, 2025.

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any,
is treated as capital reserve.

Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In
case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of
share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares from its
retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act,
1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained earnings: The reserve is the profit/(loss) that the Company has earned/incurred till date, Add/less any transfers to/
from general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss /
(gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in
equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of
equity instrument.

Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets of the
Company's foreign operations from their functional currencies to the Company's presentation currency (i.e ^) are recognised
directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange Difference
in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the
foreign operation.

Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains
or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The
cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only
when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair
value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value
measurements and the costs represents estimate of fair value within that range.

#These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has
chosen to designate these investments in equity instruments at fair value through other comprehensive income.

There were no transfers between Level 1 and 2 in the periods.

The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost
approximates their fair value.

NOTE: 42 CAPITAL MANAGEMENT

The Company's capital management objectives are:

• to ensure the Company's ability to continue as a going concern; and

• to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt as presented on the face of the financial statements.
The Company's objective for capital management is to maintain an optimum overall financial structure. The Company
manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the
financial covenants.

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity share holder's.

NOTE: 43 FINANCIAL RISK MANAGEMENT

The Company's activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The
Company's risk management assessment and policies and processes are established to identify and analyze 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.

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, loans and investments.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of counterparty to which the Company grants credit terms in the normal course of business.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have
a good credit rating. The Company does not expect any significant losses from non-performance by these counter-parties, and
does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Trade receivables

The Company has used Expected Credit Loss (ECL) model for assessing the impairment loss. For the purpose, the Company
uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and
internal risk factors and historical data of credit losses from various customers.

Other than trade receivables, the Company has recognised an allowance of ^ 15.3 Million (March 31, 2025: ^ 15.3 Million)
against past due loans/advance including interest and ^ 1,540.0 Million (March 31, 2025: ^ 1,540.0 Million) of other receivables
based on assessment regarding its future recoverability.

Liquidity risk

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.

The Company has unutilised working capital lines from banks of ^ 38,085.0 Million as on March 31, 2026 (March 31, 2025:

^ 30,193.3 Million).

The table below provides details regarding the contractual maturities of significant financial liabilities:

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-
sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market
risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The
Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of
its investments. Thus, the Company's exposure to market risk is a function of investing and borrowing activities and revenue
generating and operating activities in foreign currencies.

Foreign exchange risk

The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily
in US Dollars, Euros, South African Rand, Brazilian Real and Russian Rouble). As a result, if the value of the Indian rupee
appreciates relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may
decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed
substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both
derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency
swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in
respect of its highly probable forecasted transactions and recognised assets and liabilities.

b) Sensitivity

For the years ended March 31, 2026 and March 31, 2025, every 5% strengthening in the exchange rate between the
Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would (decrease) / increase
the Company's profit and (decrease) / increase the Company's equity by approximately ^ (5,738.2) Million and ^ (6,202.2)
Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but
opposite effect.

In management's opinion, the sensitivity analysis is not representative of the inherent foreign exchange risk because the
exposure at the end of the reporting period does not reflect the exposure during the year.

c) Derivative contracts

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily
in US Dollars, Euros, South African Rand, Brazilian Real and Russian Rouble. The Company uses foreign currency
forward contracts, foreign currency option contracts and currency swap contracts (collectively, “derivatives”) to mitigate
its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a
financial institution.

Hedges of highly probable forecasted transactions

The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable
forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow
hedges is recorded in other comprehensive income, and re-classified in the income statement as revenue in the period
corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is
immediately recorded in the statement of profit and loss.

In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net loss of
^ 2,862.8 Million for the year ended March 31, 2026 and net loss of ^ 180.1 Million for the year ended March 31, 2025
in other comprehensive income. The Company also recorded hedges as a component of revenue, loss of ^ 1,478.2 Million
for the year ended March 31, 2026 and loss of ^ 108.3 Million for the year ended March 31, 2025 on occurrence of
forecasted sale transaction.

Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and
liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit and
loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange gains and
losses relating to the monetary items, are recognised in the statement of profit and loss.

Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company's purchases and sales of
active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients.
These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the
Company's raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in
the Company's active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the
largest portion of the Company's cost of revenues. Commodity price risk exposure is evaluated and managed through
operating procedures and sourcing policies. As of March 31, 2026, the Company had not entered into any material
derivative contracts to hedge exposure to fluctuations in commodity prices.

EMPLOYEE BENEFITS

Defined contribution plan

Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC)
and other Funds which covers all regular employees. While both the employees and the Company make predetermined
contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are
made only by the Company. The contributions are normally based on a certain percentage of the employee's salary.
Amount recognised as expense in respect of these defined contribution plans, aggregate to ^ 1251.2 Million
(March 31, 2025: ^ 1,149.4 Million).

Defined benefit plan

a) Gratuity

In accordance with Indian Law, the Company operate a scheme of gratuity which is a defined benefit plan. The gratuity
plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of
employment in accordance with the provisions under the Code on Social Security, 2020 or as per the Company Scheme,
as applicable. Vesting occurs upon completion of contractual period of continuous years of service as defined in the
Code on Social Security, 2020. The Company manage the plan by contributing to LIC's Recognised Group Gratuity Fund
Scheme. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each
year, the Company review the level of funding in gratuity fund. The company decide its contribution based on the results
of its annual review. The company aim to keep annual contributions relatively stable at a level such that the fund assets
meets the requirements of gratuity payments in short to medium term.

b) Pension fund

The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees,
who had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.

c) Covid-19 Employee children education support

The Company have undertaken an obligation to provide financial support towards education expenses of the children of
those employees who have lost their lives due to the COVID-19 pandemic.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and
salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is
below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset
by an increase in the return on the plan's debt investments.

iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan's liability.

iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Other long term benefit plan

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy
with corresponding charge to the statement of profit and loss including impact on account of new labour code amounting to
^ 1,066.8 Million [March 31, 2025: ^ 550.9 Million] and it covers all regular employees. Major drivers in actuarial assumptions,
typically, are years of service and employee compensation.

Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the
year end using the ‘Projected Unit Credit' method. Gains and losses on changes in actuarial assumptions relating to defined
benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of other long term
employee benefit plans are recognised in profit or loss.

a) The Company has recognised a lease liability measured at the present value of the remaining lease payments, and right-of-
use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management has exercised
judgement in determining whether extension and termination options are reasonably certain to be exercised. Expenses
relating to short-term leases and low-value assets for year ended March 31, 2026 is ^ 46.13 Million (March 31, 2025:

^ 44.65 Million).

b) The Company has given certain premises and plant and machinery under operating lease or leave and license agreements.
These are generally not non-cancellable and periods range between 11 months to 5 years under leave and license/lease
and are renewable by mutual consent on mutually agreeable terms. The Company has received refundable interest free
security deposits where applicable in accordance with the agreed terms.

NOTE: 52 USE OF ESTIMATES, JUDGMENTS AND ASSUMPTIONS

The preparation of the Company's financial statements requires the management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures,
and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which
the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation
uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements is included in the following notes:

a) Litigations [Refer Note 2 (2.2) (m) and Note 38]

b) Revenue [Refer Note 2(2.2)(n)]

c) Impairment of goodwill and intangible assets [Refer Note 2(2.2) (f)]

d) Impairment of Investment in subsidiaries [Refer Note 2(2.2) (g)]

e) Income tax [Refer Note 2(2.2) (r)]

NOTE: 53 REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company has recorded an additional amount of ^ 870.7 Million (March 31, 2025: ^ 285.2 Million) as deferred revenue
pursuant to the requirements of Ind AS 115. Revenue of ^ 632.6 Million (March 31,2025: ^ 507.6 Million) has been recognised
as Revenue from contract with customer pursuant to completion of performance obligation in respect of the above contracts.
Further, deferred revenue amounting to ^ 37.5 million has been reversed during the year due to cancellation of agreement.

Contract balances of Trade receivables and Contract liabilities as on April 01. 2024 were ^ 88,353.1 Million and ^ 5,278.2
Million respectively.

Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront
revenue received from customer for which performance obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the
contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.

The Company has recognised revenue of ^ 100.2 Million (March 31, 2025 ^ 148.6 Million) from the amounts included under
advance received from customers at the beginning of the year.

1 Product related intangibles consisting of trademarks, designs, technical knowhow and other intangible assets are available
to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the management's best
estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles,
technical and technological obsolescence, market demand for products, competition and their expected future benefits to
the Company.

2 Exceptional items of ^ 5,463.4 Million and Exceptional tax expense of ^ 1,656.2 Million for year ended March 31, 2026 includes:

a) Discontinuation of development work of SCD-044, and includes, (i) Impairment of acquired intangible asset under
development of ^ 1,514.9 Million and (ii) Other costs of ^ 1,361.5 Million (included in research and development
expenses). Exceptional tax credit on this charge is ^ 1,005.1 Million.

b) The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four
labour codes as follows: Code on Wages, 2019, Code on Social Security, 2020, Industrial Relations Code, 2020
and Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "New Labour
Codes"). The New Labour Codes became effective from November 21, 2025 and introduce changes that include,
among other things, setting a uniform definition of wages. The Government is in the process of issuing related rules.
The New Labour Codes have implications on employee benefits including gratuity, leave encashment, and other
related obligations.

The Company has assessed the implications of the New Labour Codes and has recognized an incremental cost of
^ 2,587.0 Million and related tax credit of ^ 651.1 Million.

3 In May 2022, US FDA inspected Sun Pharma's Halol facility, and the inspection was classified as Official Action Indicated
(“OAI”) in August 2022. Subsequently, in December 2022, US FDA placed the Halol facility on Import Alert 66-40 and
afterwards, issued a Warning Letter summarizing violations of current Good Manufacturing Practice (“cGMP”) at the
facility (amended in October 2023). Subsequently, following a June 2025 inspection, the US FDA classified Halol facility
as "Official Action Indicated" (OAI) in September 2025. The Company is taking corrective measures necessary to get the
facility back to fully compliant status.

4 In September 2013, US FDA had placed Sun Pharma's Mohali facility on Import Alert; the site was also subjected to
certain provisions of the Consent Decree of Permanent Injunction entered against Ranbaxy Laboratories Ltd. in January
2012 (Ranbaxy Laboratories Ltd. was merged with Sun Pharma in March 2015). In March 2017, US FDA removed the
Import Alert on Mohali facility and indicated that the site was in substantial compliance with the provisions mentioned
in the Consent Decree. In August 2022, US FDA inspected the Mohali facility, and the inspection was classified as OAI.

In April 2023, US FDA issued a Consent Decree Correspondence / Non-Compliance letter to the Mohali facility in
which US FDA directed the Company to take certain corrective actions at the Mohali facility, and certain actions before
releasing finished drug product batches into the United States. These actions include, but are not limited to, retaining
an independent cGMP expert to conduct batch certifications of drug products manufactured at the Mohali facility for
shipment to the U.S. market.

5 In December 2023, US FDA inspected Sun Pharma's Dadra facility and has subsequently determined the inspection
classification status of this facility as Official Action Indicated (OAI). In June 2024, US FDA issued a Warning Letter
summarizing violations of cGMP at the facility. The Company is taking corrective measures necessary to get the facility
back to fully compliant status.

6 In September 2025, US FDA inspected Sun Pharma's Baska facility and has subsequently determined the inspection
classification status of this facility as Official Action Indicated (OAI). The Company is taking corrective measures necessary
to get the facility back to fully compliant status.

7 The Company has only one reportable segment namely 'Pharmaceuticals'. 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 standalone financial statements.

8 Corporate social responsibility (CSR)

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits
for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of
the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company's CSR Policy
and the Annual Action Plan. Company's Annual Action Plan for the financial year 2025-26 covered CSR activities
in the areas - Healthcare; Education; Environment Conservation; Drinking Water Project; Disaster Relief and Rural
Development Programme.

9 The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment
includes a wide range of possible impacts on the Company due to both physical and transition risks. Even though the
Company believes its business model and products will still be viable after the transition to a low-carbon economy,
climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the financial
statements. Even though climate-related risks might not currently have a significant impact on measurement, the
Company is closely monitoring relevant changes and developments, such as new climate-related legislation.

10 The Company has used accounting software for maintaining its books of account which has 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. Further, there are no instance of audit trail feature being tampered with. Additionally, the audit trail of relevant
prior years has been preserved by the Company in accordance with statutory record retention requirements to the extent
it was enabled and recorded in those respective years, except that for two applications where the audit trail relating to
direct changes made using privileged/administrative access rights has not been preserved for the period May 2024 to
November 2024.

11 The Board of Directors of the Company at its meeting held on November 01, 2023 approved a Composite Scheme of
Arrangement covering two aspects (1) Amalgamation of five wholly-owned subsidiaries (Sun Pharmaceutical Medicare
Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade
Private Limited and Skisen Labs Private Limited) (collectively “Transferor Companies”) into the Company, and (2)
Reclassification of general reserves to retained earnings with an appointed date of April 01, 2023.

On October 7, 2025, the National Company Law Tribunal approved the above scheme. As a result, the impact of the
scheme for merger of Sun Pharmaceutical Medicare Limited including the tax credit on losses of ^ 1,401.9 Million has
been taken in the standalone I nd AS financial statements in accordance with I nd AS 103 - Business Combinations. The
financial statements for prior year has been restated to reflect the effects of the merger.

The other subsidiaries do not constitute a business under IND AS 103, and are accounted as an asset acquisition. The
Company has acquired a net liability from the said subsidiaries amounting to ^ 7.7 Million and thus the impact on the
financial position of the Company is not material on account of these subsidiaries.

13 No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act,
1988 (45 of 1988) and the Rules made thereunder.

14 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

15 The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either
severally or jointly with any other person. No trade or other receivable are due from directors of the Company either
severally or jointly with any other person.

16 The Company does not have any transaction which is 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).

17 The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time
of the year on the basis of security of current assets.

18 The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

19 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

However, the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its
subsidiaries/associates/ joint venture which have further utilised these funds for their general corporate purposes/
working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These
transactions are done on an arms length basis following a due approval process.

Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities
(“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,
whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

20 With effect from the financial year 2026-27, the Company has decided to exercise the option available under Section
115BAA of the Income-tax Act, 1961 (corresponding to Section 206 of the Income-tax Act, 2025), which provides eligible
domestic companies a concessional tax regime at an effective rate of 25.168% (22% plus applicable surcharge and cess), in
lieu of the regular corporate tax rate of 34.944%.

The Company has remeasured its deferred tax assets and liabilities at the new applicable rate as at March 31, 2026, in
accordance with Ind AS 12, 'Income Taxes'. This has resulted in a net credit to tax expense of ^ 550.0 Million for the year
ended March 31, 2026.

21 The Company has complied with the number of layers prescribed under the Companies Act, 2013.

22 During the year, the Company has not revalued its property, plant and equipment (including right-of-use assets) or
intangibles or both.

25 Relationship with Struck off Companies

The Company does not have any transactions and balances with companies which are struck off except shares held by 3
shareholders holding 5,505 shares (March 31, 2025 - 35 shareholders holding 27,037 shares).