(ii) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of ? 10 per share. Each holder of equity shares is entitled to one vote per share and rank pari passu. In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution shall be in proportion to the number of equity shares held by the shareholders.

There are nil shares reserved for issue under options and contracts/commitments for the sale of shares/disinvestment, including the terms and amounts;

(a) Vehicle loans from Punjab National bank and axis bank amounting to Rs. 7.42 lakhs (31 March 2023: Rs. 12.00 lakhs) carrying interest rate in the range of 7.55% p.a. to 9.45% p.a. (previous year 7.55% p.a. to 10.26% p.a) are secured against hypothecation of specific vehicle purchased out of the proceeds of those loans. The loans are to be repaid as per the respective repayment schedule in equal monthly instalments.

Term loan from Axis bank amounting to Rs. 42.63 lakhs (31 March 2023: Rs. 57.25 lakhs) carrying interest rate of 7.60% p.a. (previous year 7.60%p.a.) is secured by way of equitable mortgage of property situated at Plot No. 61B, EPIP, Phase 1, Jharmari, H P. The loan is to be repaid in 84 installments of Rs 1.53 lakhs as per repayment schedule in equal annual installments commencing from 27 November 2020.

GECL loan from Punjab National bank amounting to Rs. Nil (31 March 2023: Rs. 35.43 lakhs) carrying interest rate of 8.55% p.a. (previous year 7.65% p.a.) is an extended loan under GECL scheme secured by way of existing security pledged with the bank. The loan is to be repaid in 36 installments of Rs. 7.22 lakhs as per repayment schedule in equal annual installments commencing from 30 Nov 2021. The last installment would be repaid in October 2024.

Vehicle loans from HDFC Bank amounting to Rs. 16.22 lakhs (31 March 2023: Rs. 26.66 lakhs) carrying interest rate of 7.65% p.a. (previous year Nil) are secured against hypothecation of specific vehicle purchased out of the proceeds of those loans. The loans are to be repaid as per the respective repayment schedule in equal monthly installments.

Vehicle loans from HDFC Bank amounting to Rs. 19.97 lakhs (31 March 2023: Rs. 32.83 lakhs) carrying interest rate of 7.65% p.a. (previous year Nil) are secured against hypothecation of specific vehicle purchased out of the proceeds of those loans. The loans are to be repaid as per the respective repayment schedule in equal monthly installments.

" GECL loan from HDFC Bank amounting to Rs. 406.32 lakhs (31 March 2023: Rs. 610.47 lakhs) carrying interest rate of 7.65% p.a. is an extended loan under GECL scheme secured by way of existing security pledged with the bank.The loans are to be repaid as per the respective repayment schedule in 60 equal monthly installments.

Term loan from Punjab National Bankamounting to Rs. 89.44 lakhs (31 March 2023: Rs. 100.38 lakhs) carrying interest rate of 6.75% p.a. (previous year Nil) is secured by way of equitable mortgage of property situated at Plot No. 61B, EPIP, Phase 1, Jharmari, H.P. The loan is to be repaid in 120 installments of Rs. 1.38 lakhs as per repayment schedule in equal annual installments commencing from 07 January 2022. The last installment would be repaid in December 2031.

Term loan from Punjab National Bank amounting to Rs 11.32 lakhs (31 March 2023: Rs. 13.70 lakhs) carrying interest rate of 6.85% p.a. (previous year Nil) is secured by way of equitable mortgage of property situated at Plot No. 61B, EPIP, Phase 1, Jharmari, H P. The loan is to be repaid in 84 installments of Rs. 0.27 lakhs as per repayment schedule in equal annual installments commencing from April 2022. The last installment would be repaid in March 2029.

“(b) •- GECL loan from Edelwiess Retail Finance Limited amounting to Rs. Nil (31 March 2023: Rs. 3.55 lakhs) carrying fixed

interest rate of 14.00% p.a. (previous year 14.00% p.a.) is an extended loan under GECL scheme secured by way of existing security pledged with the bank. The loan is to be repaid in 36 installments of Rs. 0.47 lakhs as per repayment schedule in equal annual installments commencing from December 2021. The last installment would be repaid in November 2024.

(c ) GECL loan from Clix Capital Services Private Limited, to Rs. Nil (31 March 2023: Rs. 0.82 lakhs) carrying fixed interest rate of 18.00% p.a. (previous year 14.00% p.a., 01 April 2020; Nil). The loan is to be repaid in 48 monthly installments of Rs. 0.17 lakhs commencing from 27 November 2020. The last installment would be repaid in August 2024.

(d) 'Company has taken interest free borrowing from different individual lendors amounting to Rs. 148.46 lakhs (31 March 2023: Rs. 148.46 lakhs) repayable in 1 years to 3 years from the respective dates of loan. Since the fair value of such loans at inception was lower, the difference was accounted as deemed issue of other equity and added to equity component of such loan

Fund Based Working Capital facilities of Rs. 2,150.00 lakhs and non-fund based limit of Rs. 1,500 lakhs availed from Punjab National Bank are secured by hypothecation of stock of raw material, WIP, Finished goods, book debts and other current assets (i.e. entire current assets of the company present as well as future) of the company. The rate of Interest is 10.05% p.a. which is subject to change from time to time as per Bank/RBI guidelines. All the fund based and non fund based facilities from Punjab National Bank has been secured by three collaterals in the name of Company as per sanction letter and one collateral in the name of Director. 3887500 equity shares held in the name of Director has also been pledged as collateral security with Punja b National Bank. The aforesaid credit facilities are further secured by personal guarantee of directors

The adhoc limit of Rs. 500 lakhs sanctioned by Punjab National Bank is secured by extension of charge on current assets of the company already held as security by the bank. Further the said facility is also secured by extension of charge on various imm ovable properties already held by the bank as security for its credit facilities_

Fund Based Working Capital facilities of Rs. 875 lakhs availed from HDFC Bank are secured by hypothecation of stock of raw material, WIP, Finished goods , book debts and other current assets (i.e. entire current assets of the company present as wel I as future) of the company. The rate of Interest is 9.32% p.a. which is subject to change from time to time as per Bank/RBI guidelines. The said facility is collaterally secured by factory land and building measuring 3 Bigha 13 Biswa situated at Jodhapur, Barotiwala, Tehsil Baddi, Distt, Solan having valuation of Rs. 8 crores. the said facility is collaterally secured by property situated at MUHUL Manpura Tehsil Baddi distt Solan in the name of Mansa Print and Publishers Limited . The aforesaid credit facilities are further secured by personal guarantee of directors.

During the year the fund based working capital limit of Rs. 1,000 lakh has been availed from Canara bank. The same is secured against entire current assets of the Company (25.32% share of Canara Bank) and lien against fixed deposit of Rs 250 lakhs. The rate of interest is 12.15% p.a. 2,00,000 equity shares held in the name of Director has also been pledged as collateral security with Canara Bank.

*There are no financial assets and liabilities which are measured at fair value through profit or loss or fair value through oth< comprehensive income.

Investment in subsidiaries are measured at cost as per Ind AS 27, Separate financial statements’ and hence, not presented here, ii) Fair values hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statements and 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: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs;

___and_

Level 3: Inputs which are not based on observable market data (unobservable inputs).The input factors considered are Estimated cash flows and other assumptions._

A) Credit risk_

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each financial asset. The carrying amounts of financial assets represent the maximum credit risk exposure. The Company monitors its exposure to credit risk on an ongoing basis.

a) Credit risk rating management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

Life time expected credit loss is provided for trade receivables.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enfo rce repayment. Recoveries made are recognised in statement of profit and loss

A) Credit risk_

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial asset fails to meet its contractual obligations. The Company's exposure to credit risk is influenced mainly by the individual characteristics of each financial asset. The carrying amounts of financial assets represent the maximum credit risk exposure. The Company monitors its exposure to credit risk on an ongoing basis.

a) Credit risk rating management

i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

i) Foreign exchange risk

The Company has international transactions and is exposed to foreign exchange risk arising from foreign currency transactions. Foreign exchange risk arises from commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency. The Company has not hedged its foreign exchange receivables and payables as at 31 March 2022.

Sensitivities due to mortality is not material. Hence impact of change is not calculated

Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement and llfi expectancy are not applicable being a lump sum benefit on retirement.

d) The best estimated expense for the next year is 129.31 lakh.

~42 Segment information

The primary business segment is reflected based on principal business activities carried on by the Company. Managing Director ha; been identified as being the Chief Operating Decision Maker ('CODM') and evaluates the Company's performance and allocate; resources based on analysis of the variance performance indicators of the Company as a single unit. Therefore, there are no separati reportable business segments as per IND AS 108, 'Operating Segment'. The Company operates in one reportable business segment i.e. manufacturing and sales of finished pharmaceutical formulations in a dosage form and is primarily operating in India and hence considered as single geographical segment.

Entity wide disclosures:

(a) Information about services

The Company’s business operation comprises of single operating segment of manufacturing and sales of finished pharmaceutical formulations in a dosage form. Since the Company operates in one service line, therefore product wise revenue disclosure is not applicable.

(b) Information about geographical area

The Company’s sales includes sales to customers which are domiciled in India and outside India. Below are the details of Company's revenue from customers domiciled in India and outside India:

d) Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12 months or less). Payments made under such leases are expensed on a straight-line basis. The Company does not have any liability to make variable lease payments for the right-to-usethe underlying asset recognised in the financials.

The expense relating to short-term leases recognised are ? 32.47 lakhs.

Total cash outflow for leases for the year ended 31 March 2024 is ? 106.84 lakhs (for the year ended 31 March 2023 ^ 30.94 lakhs)._

47 Revenue from contracts with customers

IND AS 115, Revenue from contracts with customers, establishes a framework for determining whether, how much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainity of revenues and cashflows arising from customer contracts. Ind AS-115, provides a five step model for evaluating each revenue contract(s) which are as follows •Identifying the contract with customer •Identifying the performance obligation ('PO')

•Determine the transaction price •Allocate the transaction price to the PO •Recognize revenue

The Company is in the business of manufacturing and sales of finished pharmaceutical formulations in a dosage form of Dry Powder Injection Vials, Liquid Injections Vials, Ampoules, PFS, Hard Gelatin Capsules, Tablets, Soft Gelatin Capsules, Dry Syrups, Liquid Syrups and Suspension, Lotions etc. The revenue is respect of these recognised on point in time basis when the control of goods is transferred to the customer.

‘For the unspent amount of Rs. 47.55 lacs as on 31 March 2023, the Company has transferred the same to CSR unspent account on 30 September 2023, of which sum of Rs. 5.62 lakh has already been spent on on-going project of health care centre in Sur Singh and tuition fee payments as allowed by Schedule VII of Companies Act, 2013.

52. No dividend was paid during the current as well as preceding financial year. Further, no additional dividend is proposed for the current financial year.

53. The Board of Directors of the Company have approved the issue of 2,591,657 bonus equity shares on the record date i.e. 14 July 2022 in the proportion of 1 (One) equity share of ? 10 each for every 4 (four) equity Shares of ? 10 each held by the shareholders of the Company as on the record date. No such bonus shares issued during the current year.

54. During the year ended 31 March 2024, the Company has sold a part of property, plant and equipment at a loss of Rs. 173.51 lakhs which has been shown as exceptional loss in the Statement of Profit and Loss.

55. These standalone financial statements were approved for issue by the board of directors on 30 May 2024.

56. (a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermedianes) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

b) The Company has not received any funds from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

57. The Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity has received presidential assent on 28 September 2020. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Company will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

58. a) The Company does not have any transactions a relationships with any companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

b) There are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

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

d) The Company does not have any charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

e) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

f) Money raised by way of term loans were applied for the purposes for which these were obtained.

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

h) The Company does not have any advances in the nature of loans during the year.

i) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

This is a summary of significant accounting policies and other explanatory information referred to in our report of even date.