1.12 Provisions, Contingent Liabilities and contingent
Assets :
A provision is recognised when the Company has 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 of the amount can be made. Provisions are
determined based on best estimate required to settle
the obligation at the Balance Sheet date. When a
provision is measured using the cash flows estimated
to settle the present obligation, its carrying amount is
the present value of those cash flows (when the effect
of the time value of the money is material). The increase
in the provisions due to passage of time is recognised
as interest expense.
Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimate. If it is no
longer probable that the outflow of resources would
be required to settle the obligation, the provision is
reversed.
Contingent liabilities are disclosed when there is
a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
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 are disclosed only when an inflow of economic
benefits is probable
1.13 Income taxes
Income tax expense comprises current and deferred
tax. Current and deferred tax are recognised as an
expense or income in the statement of Standalone
statement of profit and loss, except when they relate to
items credited or debited either in other comprehensive
income or directly in equity, in which case the tax is also
recognised in OCI or directly in equity.
The Company has determined that interest and
penalties related to income taxes, including uncertain
tax treatments, do not meet the definition of income
taxes, and therefore accounted for them under Ind AS
37 Provisions, Contingent Liabilities and Contingent
Assets.
Section 115BAA of the Income Tax Act, 1961 introduced
by Taxation Laws (Amendment) Ordinance, 2019 gives
a one-time irreversible option to Domestic Companies
for payment of corporate tax at reduced rates. The
Company has opted the new tax regime from 1st April,
2022.
i) Current tax
The tax currently payable is based on taxable profit
for the year. Taxable profit differs from net profit
as reported in the Standalone Statement of Profit
and Loss because it excludes items of income or
expense that are taxable or deductible in other
years and it further excludes items that are never
taxable or deductible. The Company’s liability for
current tax is calculated using tax rates and tax
laws that have been enacted or substantively
enacted by the end of the reporting period.
Current tax assets and liabilities are offset only if
there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise
the asset and settle the liability on a net basis or
simultaneously.
ii) Deferred tax
Deferred tax is the tax expected to be payable or
recoverable on differences between the carrying
values of assets and liabilities in the financial
statements and the corresponding tax bases
used in the computation of taxable profit and is
accounted for using the balance sheet liability
method. Deferred tax liabilities are generally
recognised for all taxable temporary differences
arising between the tax base of assets and
liabilities and their carrying amount, except when
the deferred income tax arises from the initial
recognition of an asset or liability in a transaction
that is not a business combination and affects
neither accounting nor taxable profit or loss at
the time of the transaction and does not give
rise to equal taxable and deductible temporary
differences. In contrast, deferred tax assets are
only recognised to the extent that it is probable
that future taxable profits will be available against
which the temporary differences can be utilised
The carrying value of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are
expected to apply in the period when the liability
is settled or the asset is realised based on the
tax rates and tax laws that have been enacted or
substantially enacted by the end of the reporting
period. The measurement of deferred tax liabilities
and assets reflects the tax consequences that
would follow from the manner in which the Group
expects, at the end of the reporting period, to
cover or settle the carrying value of its assets and
liabilities.
Deferred tax assets and liabilities are offset to the
extent that they relate to taxes levied by the same
tax authority and there are legally enforceable
rights to set off current tax assets and current tax
liabilities within that jurisdiction.
1.14 Leases
As a lessee
The Company assess6es whether a contract contains
a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right
to control the use of an identified asset for a define
period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use
of an identified s, the Company assesses whether: (i)
the contact involves the use of on identified asset (ii)
the Company has substantially all of the economic
benefits from use of the asset through the period of the
lease and (iii) the Company has the right to direct the
use of the asset.
As a lessee, The Company recognises a right-of-use
asset and a lease liability at the lease commencement
date. 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 earlier of the end of the useful life of the right-
of-use asset or the end of the lease term. The estimated
useful lives of right-of-use assets are determined on
the same basis as those of property and equipment. 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 that are not paid at the
commencement date, discounted using the interest
. For leases with reasonably similar characteristics,
the Company adopted the incremental borrowing rate
specific to the lease
Lease payments included in the measurement of the
lease liability comprise the fixed payments, including
insubstance fixed payments and lease payments in an
optional renewal period if the Company is reasonably
certain to exercise an extension option;
The lease liability is measured at amortised cost using
the effective interest method.
The Company has elected not to recognise right-of-
use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases
of low-value assets. The Company recognises the
lease payments associated with these leases as an
expense on a straight-line basis over the lease term.
The Company applied a single discount rate to a
portfolio of leases of similar assets in similar economic
environment with a similar end date.
Leasehold land is amortised over the primary lease
term.
As a lessor
At inception or on modification of a contract that
contains a lease component, the Company allocates the
consideration in the contract to each lease component
on the basis of their relative stand-alone prices.
When the Company acts as a lessor, it determines at
lease inception whether each lease is a finance lease or
an operating lease.
To classify each lease, the Company makes an overall
assessment of whether the lease transfers substantially
all of the risks and rewards incidental to ownership of
the underlying asset. If this is the case, then the lease
is a finance lease; if not, then it is an operating lease.
As part of this assessment, the Company considers
certain indicators such as whether the lease is for the
major part of the economic life of the asset.
The Company applies the derecognition and impairment
requirements in Ind AS 109 to the net investment in the
lease.
The Company further regularly reviews estimated
unguaranteed residual values used in calculating the
gross investment in the lease.
1.15 Earnings per share ('EPS')
Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders for the period by the weighted average
number of equity shares outstanding during the
period. Diluted EPS is computed by dividing the net
profit attributable to the equity shareholders for the
year by the weighted average number of equity and
equivalent diluted equity shares outstanding during the
year, except where the results would be anti- dilutive.
Diluted EPS is computed using the weighted average
number of equity and dilutive equity equivalent shares
outstanding during the year-end, except where the
results would be anti-dilutive.
1.16 Segment Reporting
The Company is engaged in the business of
manufacturing pharmaceutical and neutracutical
products. Considering the nature of Company’s
business as well as review of operating result by
Chief Operating Decision Maker (CODM) to make
decision about resource allocation and performance
measurement, there is only one reportable business
segment in accordance with requirement of Ind AS 108
"Operating Segments".
1.17 Financial instruments1.17.1 Financial assets:
(i) Recognition and initial measurement
Trade receivables issued are initially recognised
when they are originated. All other financial assets
and financial liabilities are initially recognised when
the Company becomes a party to the contractual
provisions of the instrument.
A financial asset (unless it is a trade receivable
without a significant financing component)
or financial liability is initially measured at fair
value plus or minus, for an item not at FVTPL,
transaction costs that are directly attributable to
its acquisition or issue. A trade receivable without
a significant financing component is initially
measured at the transaction price.
Classification
Financial assets
On initial recognition, a financial asset is classified
as measured at:
- amortised cost;
- FVOCI - debt investment;
- FVOCI - equity investment; or
- FVTPL.
On initial recognition of an equity investment
that is not held for trading, the Company may
irrevocably elect to present subsequent changes
in the investment’s fair value in OCI. This election
is made on an investment-by-investment basis.
On initial recognition, a financial asset is measured
at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
-it is held within a business model whose objective is
to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
On initial recognition, a debt investment is
measured at FVOCI if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose
objective is achieved by both collecting
contractual cash flows and selling financial
assets; and
- its contractual terms give rise on specified
dates to cash flows that are solely payments
of principal and interest on the principal
amount outstanding.
On initial recognition, all financial assets not
classified as measured at amortised cost or FVOCI
as described above are measured at FVTPL.
This includes all derivative financial assets. On
initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets
the requirements to be measured at amortised
cost or at FVOCI as at FVTPL if doing so eliminates
or significantly reduces an accounting mismatch
that would otherwise arise.
Financial assets are not reclassified subsequent
to their initial recognition unless the Company
changes its business model for managing
financial assets, in which case all affected
financial assets are reclassified on the first day of
the first reporting period following the change in
the business model.
Measurement
Amortised cost
These assets are subsequently measured at
amortised cost using the effective interest method.
The amortised cost is reduced by impairment
losses. Interest income, foreign exchange gains
and losses and impairment are recognised in
Standalone Statement of Profit and Loss. Any
gain or loss on derecognition is recognised in
Standalone Statement of Profit and Loss.
Fair value through other comprehensive income
('FVTOCI')
These assets are subsequently measured at
fair value. Impairment losses (and reversal
of impairment losses) on equity investments
measured at FVOCI are not reported separately
from other changes in fair value. Dividends are
recognised as income in Standalone Statement
of Profit and Loss unless the dividend clearly
represents a recovery of part of the cost of the
investment. Other net gains and losses are
recognised in OCI and are not reclassified to
Standalone Statement of Profit and Loss
Fair value through profit or loss ("FVTPL")
These assets are subsequently measured at fair
value. Net gains and losses, including any interest
or dividend income, are recognised in Standalone
Statement of profit and loss.
Cash and cash equivalents
The Company considers all highly liquid
investments, which ore readily convertible into
known amounts of cash, that ore subject to
on insignificant risk of change in value with a
maturity within three months or less from the dote
of purchase, to be cash equivalents. Cash and
cash equivalents consist of balances with banks
which ore unrestricted for withdrawal and usage.
Trade Receivables
Trade receivables that do not contain a significant
financing component ore measured at transaction
price.
Derecognition of financial assets
The Company derecognises a financial asset
when:
- the contractual rights to the cash flows from
the financial asset expire; or
- it transfers the rights to receive the
contractual cash flows in a transaction in
which either:
• substantially all of the risks and rewards
of ownership of the financial asset are
transferred;or
• the Company neither transfers nor
retains substantially all of the risks and
rewards of ownership and it does not
retain control of the financial asset.
The Company enters into transactions
whereby it transfers assets recognised on
its balance sheet but retains either all or
substantially all of the risks and rewards of
the transferred assets. In these cases, the
transferred assets are not derecognised.
1.17.2 Debt and equity instruments
Debt and equity instruments ore classified as either
financial liabilities or as equity in accordance with
the substance of the contractual arrangement.
An equity instrument is any contract that evidences
a residual interest in the assets of an entity offer
deducting all of its liabilities. Equity instruments
issued by the Company are recorded at the proceeds
received, net of direct issue costs.
1.17.3 Financial liabilities
Financial liabilities are classified as measured at
amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-
trading, it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL
are measured at fair value and net gains and losses,
including any interest expense, are recognised in
StandaloneStatement of Profit and Loss. Other
financial liabilities are subsequently measured at
amortised cost using the effective interest method.
Interest expense and foreign exchange gains and
losses are recognised in profit or loss. Any gain or
loss on derecognition is also recognised in Standalone
Statement of Profit and Loss.
Derecognition of financial liabilities
The Company derecognises a financial liability when
its contractual obligations are discharged or cancelled
or expire. The Company also derecognises a financial
liability when its terms are modified and the cash flows
of the modified liability are substantially different,
in which case a new financial liability based on the
modified terms is recognised at fair value.
On derecognition of a financial liability, the difference
between the carrying amount extinguished and the
consideration paid (including any non-cash assets
transferred or liabilities assumed) is recognised in
Statement of Profit and Loss.
Presentation
Borrowings are classified as current liabilities
unless the Company has an unconditional
right to defer settlement of the liability for at
least 12 months after the reporting period.
Trade and other payables are presented as current
liabilities unless payment is not due within 12 months
after the reporting period.
1.17.4 Offsetting
Financial assets and financial liabilities are offset and
the net amount presented in the balance sheet when,
and only when, the Company currently has a legally
enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the
asset and settle the liability simultaneously.
1.17.5 Derivative financial instruments
The Company holds derivative financial instruments
to hedge its foreign currency and interest rate risk
exposures. Embedded derivatives are separated from
the host contract and accounted for separately if
the host contract is not a financial asset and certain
criteria are met.
Derivatives are initially measured at fair value.
Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are
generally recognised in Standalone Statement of profit
and loss.
(C) Recent Indian Accounting Standard (Ind AS)
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.
In May 2025, MCA notified amendments to Ind AS 21-
The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. Aprill, 2025. The Group has reviewed
the amendment and based on its evaluation has
determined that it does not have any significant impact
in its financial statements.
In August 2025, MCA notified the following amendments
to:
a. Ind AS 1, Presentation of Financial Statements,
applicable w.e.f April l, 2025 - The amendment
relates to classification of liabilities as current
or non -current and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence of
a right to defer settlement for at least 12 months
after the reporting date, and instead requires
that the said right should exist on the reporting
date and have substance. The amendment also
introduces guidance on classification of liabilities
with covenants. The Group has no impact of these
amendments in its classification criteria of current
and non-current liabilities.
b. Ind AS 7, Statement of Cash Flows and Ind AS l
07, Financial Instruments- Disclosures, applicable
w.e.f Aprill, 2025- The amendment in Ind AS 7
requires to inform users of financial statements
of the existence of supplier finance arrangements
and explain the nature of the arrangements, the
carrying amount of liabilities and the range of
payment due dates. Ind AS l 07 has been amended
to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk.
The Group has evaluated the amendment and
accordingly provided disclosure of non-cash
transactions (Note 25) and disclosure of liquidity
risk arising from liabilities related to supplier
finance arrangements (Note 43(e)).
c. Ind AS 12, International Tax Reform- Pillar
Two Model Rules applicable immediately- The
amendments provide a temporary mandatory
relief from deferred tax accounting for top-up tax
and disclose that they have applied the relief. The
Group has reviewed the amendment and based
on its evaluation has determined that it does not
have any impact in its Consolidated financial
statements.
The Company has one class of equity shares having a face value of ' 1 each (In absolute Value). Each shareholder
is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the
shareholders in ensuing Annual General Meeting, except in case of Interim Dividend. 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.
The Company has issued Compulsorily Convertible Preference Shares (CCPS) having a face value of '2 per share and
carry voting rights in accordance with the respective shareholders’ agreements. At the end of the term of CCPS, these will
be converted into Equity shares.
The Company shall be under an obligation to convert each Preference Share into Equity Shares in the ratio of 1:1, subject
to adjustments for stock dividends, splits, anti-dilution provisions and other similar events, as specified in shareholders’
agreements:
The CCPS shall compulsorily convert to Equity Shares upon earlier of: (i) 1 (One) day prior to the expiry of 20 (Twenty)
years of the date of issuance of Preference Shares; (ii) connection with an IPO, 1 (one) Business Day prior to the filing of
the updated draft red herring prospectus (or at such other point as may be mandated by the Securities Exchange Board of
India) by the Company with the competent authority.
The conversion ratio of the Preference Shares is adjusted within a period of 7 (seven) days of the occurrence of each
Valuation Adjustment Event.
Nature and purpose of reserves:
a. Securities Premium - Securities premium is used to record the premium on issue of shares. The reserve is eligible for
utilisation in accordance with the provisions of the Companies Act, 2013.
b. General Reserves - The general reserve is a free reserve which is used from time to time to transfer profits from retained
earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to
another and is not an item of other comprehensive income. This can be utilised in accordance with the provisions of the
Companies Act, 2013.
c. Retained earnings - It represents surplus / accumulated earnings of the Company available for distribution to the
shareholders.
NOTE 34 EXPENDITURE ON CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
As per section 135 of the Companies Act, 2013 , a CSR committee has been formed by the Company. The areas for CSR
activities are promoting education and rural development projects as specified in Schedule VII of the Companies Act, 2013.The
details of amount required to be spent and actual expenses spent during the year is as under:
(a) Gross amount required to be spent by the Company during the year: ' 237.04 Lakhs (Previous Year ' 198.01 Lakhs).
(b) Amount approved by the Board to be spent during the year: ' 237.04 Lakhs (Previous Year '198.01 Lakhs).
(c) Amount spent during the year on:
(i). Construction / Acquisition of Assets
35.1 : Future cash outflows in respect of the above, if any, is determinable only on receipt of judgement/decisions pending with
the relevant authorities. The Company does not expect the outcome of the matters stated above to have a material adverse
impact on the Company’s financial condition, results of operations or cash flows.
NOTE 36 SEGMENT REPORTING
The Company is engaged in the business of manufacturing pharmaceutical and neutracutical products. Considering the nature
of Company’s business as well as review of operating result by Chief Operating Decision Maker (CODM) to make decision
about resource allocation and performance measurement, there is only one reportable business segment in accordance with
requirement of Ind AS 108 "Operating Segments".
NOTE 37 DISCLOSURE OF EMPLOYEE BENEFITS
The Company has funded Defined Benefit Plan for the post employment benefit in the form of Gratuity under Life Insurance
Corporation of India. Liability of Defined Benefit Plan is provided on the basis of actuarial valuation, as at balance sheet date,
carried out by an independent actuary. The actuarial valuation method used by an actuary for measuring the liability is the
Projected Unit Credit Method. The Company’s Defined Benefit Plan is funded, the fair value of the plan asset is reduced from
the gross amount of obligation under the defined benefit plan, to recognise on a net basis. Actuarial gain and losses comprise
experience adjustments and the effect of changes in actuarial assumptions and are recognised immediately in the statement
of Other Comprehensive Income as income or expense.
Gratuity
The Company provides for gratuity for employees in India as per the Code of Social Security, 2020. Employees who are in
continuous service for a period of 5 years are eligible for gratuity. Every employee is entitled to a benefit equivalent to fifteen
days salary last drawn for each completed year of service in line with the Code of Social Security, 2020 or Company scheme
whichever is beneficial. The same is payable at the time of separation from the Company or retirement, whichever is earlier.
Plan is fully funded.
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government
securities, and other debt instruments.
Interest 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.
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 during their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.
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.
The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company maintains
a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
Sensitivity
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:
At the date of commencement of the lease, the Company recognises a right-of-use asset ("ROU") and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less
(short-term leases), variable lease and low value leases. For these short-term, variable lease and low value leases, the
Company recognises the lease payments as an operating expense on a straightline basis over the term of the lease.
Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it is reasonably certain that they will be exercised.
Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease
term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or
changes in circumstances indicate that their carrying value-in-use is determined on an individual asset basis, unless the
asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable
amount is determined for the Cash Generating Unit (CGU) to which the asset belongs. Leasehold land is carried at cost
and is amortised over its lease term of 99 years.
The lease liability is initially measured at amortised cost at the present value of the future lease payments. The lease
payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension
or a termination option.
Lease liability and ROU asset have been separately presented in the Standalone Financial Statements and lease payments
have been classified as financing cash flows.
ii) The Company as a lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease
transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All
other leases are classified as operating leases. For operating leases, rental income is recognised on a straight line basis
over the term of the relevant lease.
On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost
for the right-to-use asset, and finance cost for interest accrued on lease liability.
iii) Others
(a) Applied a single discount rate to a portfolio of leases of similar assets in similar economic environment with a similar
end date
(b) Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease
term on the date of initial application, variable lease and low value asset.
(c) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
(d) Applied the practical expedient in the assessment of which transactions are leases. Accordingly, Ind AS 116 is applied
only to contracts that were previously identified as leases under Ind AS 17.
(e) The effective interest rate for lease liabilities is 6.57 p.a., with maturity between 2025-2026.
(A) as a lessee
The changes in the carrying value of right of use for the year ended 31st March, 2026 and 31st March, 2025 are shown in
Note no 4
(ii) Valuation technique used to determine fair value
The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will
issue further units of mutual fund and the price at which issuers will redeem such units from the investors.
The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. The fair value of derivative financial instruments is based on observable market inputs
including currency spot and forward rate, yield curves, currency volatility, credit quality of counterparties, interest rate
curves and forward rate curves of the underlying commodity etc. and use of appropriate valuation models.
(iii) Valuation Process
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values. The current market borrowing rates of the Company
are compared with relevant market matrices as at the reporting dates to arrive at the discounting rates.
(iv) Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are
required)
The management assessed that fair value of cash and cash equivalents, trade receivables, trade payables, loans payable
on demand and other current financial assets and liabilities
approximate their carrying amounts largely due to the short term maturities of these instruments.
The fair value of non-current borrowings carrying floating-rate of interest is not impacted due to interest rate changes, and
will not be significantly different from their carrying amounts as there is no significant change in the underlying credit risk
of the Company (since the date of inception of the loans).
NOTE 42 FINANCIAL INSTRUMENTS - RISK MANAGEMENT
The Company is exposed to the credit risk, liquidity risk and market risk. In order to minimise any adverse effects on the financial
performance of the Company derivative financial instruments, such as foreign exchange forward contracts are entered into
to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or
speculative instruments.
Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with bank and financial institution, foreign exchange transactions and
other financial instruments.
Credit Risk Management
Financial instruments and cash deposits
The Company maintains exposure in cash and cash equivalents, term deposits with banks and investments. Individual
risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and
concentration of exposures are actively monitored by the Company. For banks and financial institutions, only high rated
banks are accepted.
Trade receivables
Trade receivables are typically unsecured and are derived from revenue earned from customers. Credit risk has been
managed by the Company through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account
of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The
provision matrix takes into account a continuing credit evaluation of Company’s customers’ financial condition; ageing
of trade accounts receivable; the value and adequacy of collateral received from the customers in certain circumstances
(if any); the Company’s historical loss experience and adjustment based on forward looking information. The Company
defines default as an event when there is no reasonable expectation of recovery.
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. Further to this, the Company also has unutilised credit limits with banks.
Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturity grouping based on their contractual
maturities for all non-derivative and derivative financial liabilities.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balance due within 12 months equal
their carrying balances as the impact of discounting is not significant.
Contractual maturities of financial liabilities
(C) Market Risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the value
of a financial asset. The value of a financial asset may change as a result of changes in the interest rates, foreign currency
exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all
market risk sensitive financial instruments including investments, deposits, foreign currency receivables, payables, loans
and borrowings.
(i) Foreign currency risk exposure:
The Company has international operations and is exposed to foreign exchange risk arising from foreign currency
transactions. Foreign exchange risk arises from future commercial transactions and recognised Financial assets
and liabilities denominated in a currency that is not the functional currency ' of the Company. The risk also 'includes
highly probable foreign 'currency cash flows. The objective of the cash flow hedges is to minimise the volatility of the
cash flows of highly probable forecast transactions. The Company hedges its foreign exchange risk using foreign
exchange forward contracts after considering the natural hedge.
The amounts disclosed in the table are undiscounted cash flows. The exposure to foreign currency risk of the
Company at the end of the year expressed in ' are as follows:
For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable
to the equity shareholders of the Company.
The primary objective of the Company’s Capital Management is to maximise the Shareholder value and to safeguard the
Company’s ability to meet its liquidity requirements (including its commitments in respect of capital expenditure) and repay
loans as they fall due.
The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and
requirements of the financial covenants and to continue as a going concern. The Company monitors using a gearing ratio
which is net debts divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and
borrowings, less cash and short term deposit.
No changes were made in the objectives, policies or processes for managing capital during the year ended as at 31st March,
2026 and as at 31st March, 2025. The Company has not defaulted in repayments of its borrowings and finance costs.
NOTE 44
The Company’s international transactions with associated enterprises are at arm’s length, as per the independent accountant’s
report for the year ended 31st March, 2025. The Management believes that the Company’s international transactions with
associated enterprises post 31st March, 2025 continue to be at arm’s length and that transfer pricing legislations will not have
any impact on the financial statements, particularly on the amount of tax expenses for the year and the amount of provision for
taxation at the year end.
NOTE 45 NOTE ON ULTIMATE BENEFICIARES
During current year, the Company has issued Compulsorily Convertible Preference shares ("CCPS") to various shareholders and
have received funds amounting to ' 16,000 Lakhs from such issuance.The Holding Company has advanced loan to one of its
subsidiary companies, Sudeep Pharma B.V ("SPBV"). SPBV has made investment in its step down subsidiary company namely
Nutrition Supplies and Services (Ireland) Limited ("NSS"). Details of investments made are as under:
During the year ended 31st March, 2026 the Company has completed an Initial Public Offering (IPO) of 15,092,749 equity shares
with a face value of '1/- each at an issue price of '593/- per share comprising of fresh issue of 1,602,023 shares and offer for
sale (OFS) by certain existing shareholders 13,490,726 shares. The Company’s equity shares were listed on the National Stock
Exchange of India Limited (NSE) and BSE Limited (BSE) on 28 November 2025.
The Company has received an amount of '8,833.59 Lakhs as net proceeds which is summarised as follows.
NOTE 51
a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
d) The Company does not have any transactions which are not recorded in the books of accounts that have been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961)
e) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.
f) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
g) The Company has not provided any loans or advances in the nature of loans are granted to promoters, directors, KMPs
and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:
(i) repayable on demand or
(ii) without specifying any terms or period of repayment"
On 21 May 2026, the Board of Directors of the Company have proposed a final dividend of ' 1.50 per equity share in respect of
the year ended 31st March, 2026, subject to the approval of shareholders at the Annual General Meeting, and if approved, would
result in cash outflow of approximately ' 1,694.23 Lakhs.
NOTE 53
There are no subsequent events that have occurred after the reporting period till the date of approval of these standalone
financial statements.
NOTE 54
These Standalone Financial statements were approved by Board of Director's in their meeting held on 21 May 2026.
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