1.15 Provisions, Contingent Liabilities and Contingent
Assets:

Provisions

Provisions are recognized only when there is a present
obligation as a result of past events and it is probable
that an outflow of resources will be required to settle
the obligation in respect of which a reliable estimate
can be made.

Contingent liability

It is disclosed for:

a. Possible obligations which will be confirmed only
by future events not wholly within the control of the
company, or

b. 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

A contingent asset is a possible asset that arises from
past events and whose existence 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. Contingent assets are not
recognised and disclosed only when an inflow of
economic benefits is probable.

1.16 Leases:

At inception of a contract, the Company assesses
whether a contract is, or contains, a lease. A contract
is, or contains, a lease if the contract conveys the
right to control the use of an identified asset for
a period of time in exchange for consideration.
The Company recognises a right-of-use asset and a
lease liability at the lease commencement date except
for leases with a term of twelve months or less (short¬
term leases) and low value leases. For these short-term
and low value leases, the lease payments associated
with these leases are recognised as an expense in
the statement of profit and loss on a written down
value basis over the lease term. Lease term is a non¬
cancellable period together with periods covered by an
option to extend the lease if the Company is reasonably

certain to exercise that option; and periods covered
by an option to terminate the lease if the Company
is reasonably certain not to exercise that option.
The right-of-use asset is initially measured at cost,
which comprises the initial amount of the lease
liability adjusted for any lease payments made at or
before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received. The right-of-use asset
is subsequently depreciated using the straight line
method from the commencement date to the end of
the lease term, unless the lease transfers ownership
of the underlying asset to the Company by the end
of the lease term or the cost of the right-of-use asset
reflects that the Company will exercise a purchase
option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying
asset. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability.
The lease liability is initially measured at the present
value of the lease payments to be paid over the
lease term at the commencement date, discounted
using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the Company's
incremental borrowing rate. Generally, the Company
uses its incremental borrowing rate as the discount
rate. Subsequently, the lease liability is measured at
amortised cost using the effective interest method.

The Company makes the use of leasing arrangements
principally for the provision of the head office and
related facilities. The Company does not enter into
sale and leaseback arrangements. All the leases
are negotiated on an individual basis and contain a
wide variety of different terms and conditions such as
escalation clauses, termination rights etc.

Lease liability and Right of use asset have been
separately presented in the Balance Sheet and lease
payments have been classified as financing cash
flows.

1.17 Foreign currency transactions and translation:

Transactions in foreign currencies entered into by
the Company are accounted for at the exchange rate
prevailing at the date of transaction. Foreign currency
monetary assets and liabilities remaining unsettled

at the end of the year are translated at the exchange
rate prevailing at the end of the year. All differences
arising on settlement/restatement are adjusted in the
statement of profit and loss.

1.18 Government Grant:

Government grants relating to the purchase of property,
plant and equipment are included in non-current
liabilities as deferred income and are credited to the
Statement of Profit or Loss on a systematic basis over
the useful life of the asset.

1.19 Measurement of Profit before interest, tax,
depreciation and amortisation

As permitted by Guidance Note on Schedule III, the
Company has opted to present profit before interest
(finance cost), tax, depreciation and amortization as a
separate line item on the face of the Statement of Profit
and Loss for the year. The Company measures profit
before interest (finance cost), tax, depreciation and
amortization based on profit/(loss) from continuing
operations.

1.20 Share-based payment transactions:

Employees Stock Options Plans (ESOP):

Equity settled share based payments to employees are
measured at the fair value of the equity instruments at
the grant date. The fair value determined at the grant
date of the equity settled share based payments is
expensed on a straight line basis over the vesting period,
in accordance with IND AS 102 Share based payment,
based on the Company's estimate of equity instruments
that will eventually vest, with a corresponding increase in
equity. The increase in equity recognized in connection
with share based payment transaction is presented as
a separate component in equity under "Share based
payment reserve". The amount recognized as an expense
is adjusted to reflect the actual number of stock options
that vest.

1.21 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. For the year ended 31st
March, 2026, MCA has notified following Amendment
to Ind AS, applicable to the Company w.e.f. 1st April,
2025.

- Ind AS - 21 The Effects of Changes in Foreign Exchange
Rates Lack of Exchangeability

- Ind AS 12 - Income Taxes relating to International
Tax Reform - Pillar Two Model Rules - Exception to
recognition and disclosure of deferred tax.

- Amendments to Ind AS 7 - Cash flow statement
and Ind AS 107 - Financial Instrument Disclosures
relating to supplier finance arrangements

- Ind AS 1-Presentation of Financial Statements
Classification of Liabilities as current or non¬
current and non- current liabilities with covenants.

The Company has reviewed the new pronouncements
and based on its evaluation has determined that it
does not have any significant impact in its Standalone
financial statements.

.22 New and amended standards issued but not effective:

The MCA has issued certain amendments to Indian
Accounting Standards which are not yet effective as at
31st March, 2026. The Company has not early adopted
any standard, interpretation or amendment that has
been issued but is not yet effective.

* Biocon Biologics Limited (BBL)

1. The Company tests impairment of goodwill on an annual basis. Based on the annual impairment test no provision towards
impairment is required. The recoverable amounts determined based on value-in-use calculations which is calculated as the net
present value of forecasted cash flows of the cash generating unit (CGU) to which the goodwill is related. Acquired brands are
considered as CGU for testing impairment of goodwill amounting to Rs 48.57 crores generated on acquisition of brands.

2. The key assumptions for CGUs with significant amount of goodwill as follows:

Projected cash flows for five years based on financial budgets/forecasts in line with the past experience. The terminal value has
been determined using a long-term growth rate of 5%, which reflects expected macroeconomic growth factors. The discount
rate, determined as 13.02% as of March 31, 2026, is based on current market conditions and the specific circumstances of the
Company and its operations. It has been derived from the Company's weighted average cost of capital (WACC). The Management
believes that any reasonable possible change in the key assumptions on which a recoverable amount is based would not cause
the carrying amount to exceed its recoverable amount of the CGU.

11.4 Terms / Rights attached to the equity shares:

The Company has only one class of equity shares having a par value of Rs 1 per share. Each holder of equity share is eligible
for one vote per share. The final dividend, if any, proposed by the Board of Directors of the Company is subject to the
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders
are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to
their shareholding.

11.5 Share options granted under the Company's employee share option plan:

The Company recognizes compensation expense relating to share-based payments in statement of profit and loss using
fair value in accordance with Ind AS 102, share based payment. The estimated fair value of awards is charged to income
on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award
was in-substance multiple awards with a corresponding increase to share options outstanding account.

11.6 Shares issued for consideration other than cash in five years immediately preceding March 31, 2026

During the year ended March 31, 2026 the Company had acquired 16,74,493 equity shares of Swiss Parenteral Limited
(SPL) by issuance and allotment of 23,06,372 equity shares on a preferential basis of Rs 423.33 crore which has been
accounted in securities premium of Rs 423.10 crore and equity shares of Rs 0.23 crore. (Refer Note 27.2)

11.7 Dividend

The Board of Directors of the Company has declared an interim dividend of Rs 7.21/- (at the rate of 721 Percent) per equity
share of the face value of Re. 1/- each for the financial year 2026-27 at its meeting held on May 20, 2026.

Notes:

Nature and purpose of reserves:

Retained Earnings: Retained Earnings are the profits that the company has earned till date less any transfer to general reserve,
dividends and other distributions to shareholder.

Security premium: The amount received in excess of the par value of equity shares has been classified as securities premium.
Such amount is available for utilisation in accordance with the provisions of the Companies Act, 2013.

Share based payment reserve: The fair value of equity-settled share based payment transactions with employees is recognised
in Statement of Profit and Loss with corresponding credit to Share based payment reserve. Such amount is available for utilisation
in accordance with the provisions of the Companies Act, 2013.

Capital redemption reserve: The Company is required to create capital redemption reserve in accordance with provisions of the
Companies Act 2013 for buy back of shares. The reserve can be utilised in accordance with the provisions of section 69 of the
Companies Act, 2013.

Note 26: Segment reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is
evaluated regularly by the chief operating decision maker (CODM), in deciding how to allocate resources and assessing
performance. The Company's chief operating decision maker is the managing director and the company has only one reportable
business segment i.e. 'pharmaceuticals'.

No single external customer represents 10% or more of the Company's total revenue for the years ended 31st March, 2026 and
31st March, 2025 respectively. Revenue from a wholly owned subsidiary is not being considered.

Note 27: Mergers and acquisitions

Note 27.1: Acquisition of the Branded Formulations India business units from Biocon Biologics Limited

During the previous year, the Company has completed acquisition of the Indian Branded Formulations business comprising
of Insulin, Oncology and Critical Care products from Biocon Biologics Limited for a consideration of Rs. 1,242 crore on a slump
sale basis. The acquisition was completed on April 1, 2024. The Company has determined the fair values of identified assets and
liabilities for the purpose of Purchase price allocation.

Goodwill arose in the acquisition of the above said entity because the consideration paid for the combinations effectively included
amounts in relation to the benefit of expected synergies, revenue growth, future market development and the assembled
workforce. These benefits are not recognised separately from goodwill because they do not meet the recognition criteria for
identifiable intangible assets.

Note 27.2: Acquisition of 100% shares of Swiss Parenterals Limited

During the year ended March 31, 2024, the Company completed the acquisition of 28,46,639 equity shares of Rs.10 each of Swiss
Parenterals Limited (SPL) representing 51% of equity share capital for an aggregate consideration of Rs. 638.30 crore (including
transaction cost) of SPL and obtained control on February 15, 2024 from its erstwhile shareholders.

During the previous year, the Company has further acquired 10,60,512 equity shares of Rs 10 each of SPL representing 19% of the
equity share capital of SPL on April 18, 2024 for a consideration of Rs. 237.50 crore from the promoters of the Company at the
same per equity share price as paid to erstwhile shareholders.

During the year, pursuant to approval of the Executive Committee of the Board on January 16, 2026, the Company further
acquired 16,74,493 equity shares of Rs. 10 each of SPL (representing 30% of its equity share capital) from Mr. Naishadh Shah,
through preferential allotment of 23,06,372 equity shares of the Company issued on a private placement basis for consideration
other than cash, of Rs 423.33 crore which has been accounted in securities premium of Rs 423.10 crore and equity shares of
Rs 0.23 crore consequently to which SPL has become a wholly owned subsidiary of the Company.

Note 27.3: Acquisition of 100% Shares in Eris Bionxt Private Limited (formerly known as Chemman Labs Private Limited)

During the previous year, the Company acquired 1,43,13,418 equity shares of Rs 10 each representing 100% of the equity share
capital of Eris Bionxt Private Limited (formerly known as Chemman Labs Private Limited) from its erstwhile shareholders for
a consideration of Rs. 27 Crores. The transaction achieved closure in October 2024, on completion of all relevant conditions
precedent to the transaction.

Note 27.4: Acquisition of 100% equity shares of Eris Pharmaceuticals Limited (formerly known as Eris Pharmaceuticals
Private Limited)

During the previous year, the Company has acquired 10000 equity shares of Eris Pharmaceuticals Limited (EPL) at the face
value of Rs 10 from the erstwhile shareholders, thereby EPL has become a wholly- owned subsidiary of the Company. Before the
acquisition date EPL was step down subsidiary of the Company.

Note 27.5: Acquisition of the Branded Probiotics business from Velbiom Probiotics Private Limited

During the year, the Company has completed acquisition of the Branded probiotics business from Velbiom Probiotics Private
Limited for a consideration of Rs. 50 crore on a slump sale basis. The acquisition was completed on March 31, 2026. The Company
is in the process of making final determination of fair values of identified assets and liabilities for the purpose of purchase price
allocation.

Note 27.6 : Demerger of Domestic Business of Eris Oaknet Healthcare Private Limited (EOHPL)

During the previous financial year, the Company had proposed a Composite Scheme of Arrangement which involved the demerger
of the domestic formulation business of EOHPL and its merger into the Company. Eris Lifesciences Limited has sold it's equity
investment in Eris Oaknet Healthcare Private Limited (EOHPL) to Eris Therapeutics Limited (ETL). As a result, EOHPL is a now a
wholly owned subsidiary of ETL.

During the previous financial year, taking into account the revised shareholding structure and other relevant factors arising
from the above-mentioned transfer of stake, the Company decided to revise and modify the earlier proposed Scheme whereby
the "Domestic Business" of Eris Oaknet Healthcare Private Limited shall get vested into Eris Therapeutics Limited ("Resulting
Company/Amalgamated Company") and Aprica Healthcare Limited ("Amalgamating Company", "AHL") would be amalgamated
with the Eris Therapeutics Limited.

Accordingly, the respective Boards of Directors of ETL, AHL, and EOHPL have approved the revised Composite Scheme of
Arrangement under Sections 230 to 232, read with Section 66 and other applicable provisions of the Companies Act, 2013. The
revised Scheme is subject to necessary statutory and regulatory approvals, including approvals from shareholders, creditors, and
relevant authorities, as required under applicable laws.

Note 28: Employee benefit plans

A) Defined contribution plans:

The Company makes contributions towards provident fund, a defined contribution retirement benefit plan for qualifying
employees. The provident fund is operated by the Regional Provident Fund Commissioner. The Company recognized Rs. 23.00
Crore (Previous Year Rs.10.16 Crore) for provident fund contributions in the Statement of Profit and Loss. The contributions
payable to these plans by the company are at rates specified in the rules of the scheme.

The Company made contributions towards Employees State Insurance Scheme operated by the ESIC Corporation. The Company
recognized Rs. 0.02 Crore (Previous year Rs.0.05 Crore) for ESIC contributions in the Statement of Profit and Loss. The
contributions payable to these plans by the company are at rates specified in the rules of the scheme.

B) Defined benefit plans:

Actuarial Valuation for Compensated Absences is done as at the year end and the provision is made as per Company rules with
corresponding charge to the Statement of Profit and Loss amounting to Rs 6.27 Crore (Previous Year Rs.3.62 Crore) and it covers
all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation

The company makes annual contributions to the Employee's Group Gratuity cash accumulation scheme of the Life Insurance
Corporation of India, a funded defined benefit plan for qualifying employees. The Scheme provides for payment to vested
employees at retirement/death while in employment or on termination of employment as per the provisions of the Gratuity Act,
1972. The Company has Employees group gratuity trust funds which handles the payments to be made to the vested employees
as per the scheme. The trust makes payment to the vested employees based on the claims raised and received from LIC. The
present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit
Method as per actuarial valuation carried out at the balance sheet date.

The following table sets out the status of the gratuity plan as required under IND AS-19 and the amounts recognized in the
Company's financial statements as at March 31, 2026 and March 31, 2025:

Notes:

1. The plan assets which are managed by Insurance Company viz Life Insurance Corporation of India, details of those funds
invested by the insurer are not available with company.

2. The discount rate is based on the prevailing market yields of government of India securities as at the balance sheet date for
the estimated term of the obligations.

3. Expected rate of return on plan assets is determined based on the nature of assets and prevailing economic scenario.

4. The estimate of future salary increases considered, takes into account inflation, seniority, promotion, increments and other
relevant factors.

5. The expected contribution to be made by company for gratuity during financial year ending March 31, 2027 is Rs 5.17 Crore
(Previous year 4.54 Crore).

6. The weighted average duration of the defined benefit plan obligation during financial year ending March 31, 2026 is 2.83
years ( 31st March, 2025: 2.84 years)

Financial Instrument measured at amortised cost

The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are
a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would
be significantly different from the values that would eventually be received or settled.

(ii) Fair value hierarchy:

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into
three levels of a fair value hierarchy. The three levels are defined based on the observability of significant inputs to the
measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Determination of fair values:

The following are the basis of assumptions used to estimate the fair value of financial assets and liabilities that are measured at
fair value on recurring basis:

Equity investments : Fair value of Equity investments traded in an active market are determined by reference to their quoted
market prices. Other equity investments where quoted prices are not available, fair values are determined by reference to the
current market value of net assets or relied upon on valuation report of an valuer.

(iii) Financial risk management:

The Company's activities are exposed to variety of financial risks. These risks include market risk, credit risk and liquidity risk.
The Company's overall risk management program seeks to minimize potential adverse effects on the financial performance
of the Company through established policies and processes which are laid down to ascertain the extent of risks, setting
appropriate limits, controls, continuous monitoring and its compliance.

a) Market risk :

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in
market prices. The Company is not an active investor in equity markets; it continues to hold certain investments in equity
for long term value accretion. Market risk comprises of three type of risks namely interest rate risk, currency risk and other
price risk such as equity price risk. The Company is not exposed to currency risk and other price risk whereas the exposure to
interest risk is given below:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change
in market interest rate.

The Company invests in mutual fund schemes of leading fund houses and tax free bonds. Such investments are susceptible to
market price risk that arise mainly from changes in interest rate which may impact the return and value of such investments.
Investments in tax free bonds amounts to Rs.0.31 Crore and Rs.0.33 Crore as at March 31, 2026 and March 31, 2025 respectively.

As at March 31, 2026, the Company has floating rate borrowings. The Company constantly monitors the credit markets and
rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

For the year ended 31 March 2026, every 1% increase or decrease in the floating interest rate component (i.e., Treasury bill/
Repo rate) applicable to its borrowings would affect the Company's profit before tax and Equity by Rs 5.06 Crores. (Previous
year Rs 8.20 Crores.)

b) Credit Risk

The Company is exposed to credit risk, which is the risk that counterparty will default on its contractual obligation resulting in
a financial loss to the Company. Credit risk arises majorly from cash and cash equivalents, deposits with banks, Investments
as well as credit exposures to customers including outstanding receivables.

Credit Risk Management

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations,
and arises principally from the companies receivables from customers.

Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this
risk, the Company periodically assesses the financial reliability of customers, taking into account their financial position,
past experience and other factors. The Company manages credit risk through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course
of business.

Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic
indicators affecting customers of the Company have not undergone any substantial change, the Company expects the
historical trend of minimal credit losses to continue.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is
Rs.1,567.71 Crore and Rs.1,245.58 Crore as at March 31, 2026 and March 31, 2025 respectively, being the total of the carrying
amount of balances with banks, bank deposits, trade receivables, other financial assets, loans and investments excluding
equity investments in subsidiaries, and these financial assets are of good credit quality including those that are past due.

Expected credit losses are measured at an amount equal to the 12 months expected credit losses or at an amount equal to the
life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. The
Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a
provision matrix. The provision matrix considers historical credit loss experience and is adjusted for forward looking information.

The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables.

Set out below is the information about the credit risk exposure of the Company's trade receivables as on March 31, 2026 using
provision matrix:The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables.

c) Liquidity Risk

Liquidity Risk is the risk that the company will not be able to meet its financial obligation as they fall due. Liquidity risk arises
because of the possibility that the company could be required to pay its liabilities earlier than expected or encounters difficulty
in raising funds to meet commitments associated with financial liabilities as they fall due. The company approach to managing
liquidity is to ensure, as far as possible, that it always have sufficient liquidity to meet its liabilities when due. The Company
generates cash flows from operations to meet its financial obligations and manages liquidity risk by maintaining sufficient cash
and bank balance and availability of funding through adequate amount of committed credit facilities.

Contractual maturities of significant financial liabilities are mentioned below. The amounts disclosed in the table are the
contractual undiscounted cash flows:

(iv) Capital management

The capital structure of the Company consists of equity, debt, cash and cash equivalents. The Company's objective for capital
management is to maintain the capital structure which will support the Company's strategy to maximize shareholder's value,
safeguarding the business continuity and help in supporting the growth of the Company.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and
the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-
Equity ratio, which is net debt divided by total equity. Debt is defined as liabilities comprising interest-bearing borrowings,
lease liabilities less cash and bank balances.

(v) Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the EURO.
Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company's functional
currency. The Company's operations in foreign currency creates natural foreign currency hedge. This results in insignificant net
open foreign currency exposures considering the volumes and operations of the Company.

Foreign currency risk exposure:

The Company's exposure to foreign currency risk at the end of the reporting period expressed in Rs. In Crores, are as follows:

Note: The Company has received notices from NPPA (National Pharmaceutical Pricing Authority), under DPCO (Drug Price
Control Order), 2013 during earlier years. As per the Company assessment, management does not forsee any cash outflow and
expect favourable order.

Estimated amount of contracts remaining unexecuted on capital account (net of advances) not provided:
a) Current year Rs 0.78 Crore for Property Plant & Equipment (Previous year Rs NIL)

The Company has given corporate guarantee to bank for credit facilities upto Rs 305 Crores (PY Rs 555 Crores) availed by its
subsidiary Eris Therapeutics Limited. As per the terms of deed of guarantee, the Company undertakes not to divest its ownership
interest directly or indirectly in the subsidiary and provide such managerial, technical and financial assistance to ensure continued
successful operations of the subsidiary.

The Company has given corporate guarantee to bank for credit facilities upto Rs 100 Crores (PY Rs 100 Crores) availed by its
subsidiary Eris Healthcare Private Limited. As per the terms of deed of guarantee, the Company undertakes not to divest its
ownership interest directly or indirectly in the subsidiary and provide such managerial, technical and financial assistance to
ensure continued successful operations of the subsidiary.

The Company has given corporate guarantee to bank for credit facilities upto Rs 75 Crores (PY Rs NIL) availed by its subsidiary
Eris BioNxt Private Limited (formerly known as Chemman Labs Private Limited) . As per the terms of deed of guarantee, the
Company undertakes not to divest its ownership interest directly or indirectly in the subsidiary and provide such managerial,
technical and financial assistance to ensure continued successful operations of the subsidiary.

The Company does not expect any outflow of resources in respect of the above.

Note 35: ESOP

The employee compensation cost as per fair value method for the financial year 2025-26 is Rs 8.00 Crores and for financial year
2025-26 is Rs 9.13 Crores.

A. Eris Lifesciences Employee Stock Option Plan 2017' (“ESOP 2017"/ "Plan")

The Company has introduced 'Eris Lifesciences Employee Stock Option Plan 2017' ("ESOP 2017”/ "Plan”) through the resolution
passed by the Board of Directors on February 02, 2017 and the same was approved by the shareholders at the extra ordinary
general meeting held on February 03, 2017 and subsequently in the eleventh annual general meeting held on September 29,
2017 shareholders ratified the same. Under the scheme, 391,599 equity shares have been granted to eligible employees of the
company and each option (after it is vested) is exercisable for one equity share having face value of Rs 1 each for an exercise price
of Rs 451.04. Vesting of the options shall take place over a maximum period of 5 years with a minimum vesting period of 1 year
from the date of grant i.e. April 12, 2017. The exercise period would be a maximum of 5 years from the date of vesting of options.
1,21,430 options have lapsed till March 31, 2026 and March 31, 2025. As per the terms of the Scheme, each ESOP will be settled
by the issue of shares and hence been accounted as equity settled. The weighted average remaining contractual life of the below
options is 1.03 years (2.03 years March 31, 2025).

B. Eris Lifesciences Long Term Incentive Plan, 2021' ("Employee Stock Option Plan"/ "Plan")

The Company has introduced 'Eris Lifesciences Long Term Incentive Plan, 2021' ("Employee Stock Option Plan””/ "Plan”)
through the resolution passed by the Board of Directors on July 29, 2021 and the same was approved by the shareholders at the
annual general meeting held on September 01, 2021. Under the scheme 13,58,630 equity shares have been approved in Annual
General Meeting. Vesting of the options shall take place over a maximum period of 4 years with a minimum vesting period of
1 year from the date of grant. The exercise period would be a maximum of 7 years from the date of vesting of options. As per the
terms of the Scheme, each ESOP will be settled by the issue of shares and hence been accounted as equity settled. The weighted
average remaining contractual life of the below options is 6.01 years (6.44 years March 31, 2025).

Notes

(1) Debt represents borrowings and lease liabilities.

(2) "Net Profit after tax" means reported amount of "Profit / (loss) for the year" and it does not include items of other
comprehensive income.

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

(3) Lease payments, interest and principal repayment for the current year

(4) Capital Employed (Total Asset-Current Liabilities)

Note 37 (B) : Other statutory information

i) . 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:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

ii) . 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:

(a) 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

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

iii) . Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in

agreement with the unaudited books of accounts.

iv) . 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 are held in the name of the Company as at the balance sheet date.

v) . The Company does not have any transactions or balances with a Companies struck off under section 248 of the

Companies Act, 2013 or Section 560 of the Companies Act 1956.

vi) . The Company does not have any such transaction which is not recorded in the books of accounts that has been

surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961.

vii) . Details of Loan given, Investment made and Guarantee given covered u/s 186 (4) of the Companies Act, 2013:

(a) Loan given by the Company to body corporate as at March 31, 2026. (Refer Note 10)

(b) Investment made by the Company as at March 31, 2026. (Refer Note 3)

(c) Guarantee given by the Company as at March 31, 2026. (Refer note 33)

viii) The borrowings obtained by the Company from banks have been applied for the purposes for which such loans was
taken.

ix) No proceedings have been initiated on or are pending against the Company for holding benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

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

xi) The Company has complied with the number of layers prescribed under the Companies Act, 2013

xii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

xiii) The company has not revalued its property, plant and equipment during the current or previous year.

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

xv) The Company has used an accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same was operational for all relevant transactions recorded in the software except
that no audit trail has been enabled at the database level for accounting software to log any direct data changes. The
audit trail has been preserved by the Company as per the statutory requirement for record retention.

Note 37 (C): In order to make the billing and collection operations more efficient between the Eris group entities and its channel
partners, the Board of Directors of the company decided to integrate billing and collection operations into a single entity namely,
Eris Healthcare Private Limited (EHPL) which is wholly owned subsidiary of Eris Lifesciences Limited w.e.f. March 2025 in a phase
wise manner. As a result of the above, the domestic formulation sales from the Eris group entities shall be primarily from EHPL
which in turn would deal with the channel partners.

Note 37 (D) : On November 21, 2025, the Government of India notified the Code on Wages, 2019, the Industrial Relations Code,
2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively,
"Labour Codes"), consolidating twenty-nine labour laws into a unified framework; the Company's assessment indicates an
increase in gratuity (past service cost) and leave liabilities aggregating to INR 14.67 Cr, recognized under the head exceptional
item for the year ended March 31, 2026, and it continues to monitor further developments and their impact on employee benefits
liability.

Note 37 (E): The Company under the Income Tax Act 2025 is eligible to opt for the concessional tax regime from the financial
year 2026-27. In accordance with Ind AS 12 Income taxes, deferred tax assets and liabilities are measured using the tax rates that
are enacted or substantively enacted as at the reporting date. Accordingly, during the quarter and year ended 31 March 2026,
the Company remeasured its deferred tax assets and liabilities based on the revised tax rate applicable. This has resulted in an
impact of deferred tax credit of Rs 18 Crores being recognized in the statement of profit and loss.

Note 38: Items included in Financial Activities

Disclosure under para 44(a) as set out in IND AS 7 on Statement of Cash flow under Companies (Indian Accounting Standards)
rules 2014 (as amended)

Note 39:

The Financial Statements were approved for issue by board of directors on May 20, 2026.