Note 11 - Equity And Reserves
a) Ordinary shares
The Company presently has only one class of ordinary shares. For all matters submitted to vote in the shareholders meeting, every holder of ordinary shares, as reflected in the records of the Company on the date of the shareholders' meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the Company.
The Company has an authorised share capital of 200,000,000 equity shares of ' 2 each (31 March 2025 - 200,000,000 of ' 2 each).
b) Preference shares
The Company has an authorised share capital of 600,000 Cumulative Convertible Preference Shares of ' 100 each (31 March 2025 - 600,000 of ' 100 each).
c) Reserves
(i) Securities Premium reserve - The amount received by the Company over and above the face value of shares issued is shown under this head.
(ii) Retained Earnings - Accumulated earnings include all current and prior years profits as disclosed in the statement of profit and loss.
(iii) Stock Compensation reserve - Stock compensation reserve consists of employee compensation cost allocated over the vesting year of options granted to employees. Such cost is recognised in statement of profit and loss and is credited to the reserve. Upon exercise of options, such reserves are reclassified to equity share capital and security premium.
d) Dividends
The Company declares and pays dividends in Indian Rupees. Dividends are taxable in the hands of the shareholders and tax is deducted by the Company at applicable rates.
The Board of Directors at its meeting held on May 14, 2026 have recommended a final dividend of 250% i.e. ' 5 per equity share of face value of ' 2 each for the financial year ended March 31, 2026. The Dividend is subject to approval of the shareholders at the ensuing Annual General Meeting (AGM).
(c) Right, Preference and restriction on shares
The Company presently has only one class of ordinary equity shares. For all matters submitted to vote in the shareholders meeting, every holder of ordinary equity shares, as reflected in the records of the Company on the date of the shareholders' meeting, has one vote in respect of each share held. All shares are equally eligible to receive dividends and the repayment of capital in the event of liquidation of the Company.
(e) Employees Stock options Schemes 2021 i) Scheme details
The Board, at its meeting held on 6 April 2021 had approved the Alivus Life Sciences Limited (formerly Glenmark Life Sciences Limited) - Employee Stock Option Scheme, 2021 (ESOS). Further, the Shareholders' of the Company also approved the ESOS at the Extra-Ordinary General Meeting held on 9 April 2021.
9,51,734 ESOP options have been granted to the eligible employees / Directors at Nomination and Remuneration Committee meeting held on May 17, 2021. During the Financial Year 2025-2026, NIL (2024-25 - 118,715) options were cancelled and 1,99,296 options (2024-25 - 9,880 options) were issued or exercised under Employees Stock Options Scheme viz. ESOS' 2021. As of 31 March 2026, 5,45,631 (31 March 2025, 744,927) options were outstanding and are due for exercise.
On exercising the options so granted under the ESOS of the Company, the paid-up equity share capital of the Company will increase by a like number of shares.
Disclosure of amounts payable to vendors defined as Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 is based on the information available with the Company regarding the registration status of such vendors, as intimated by them in response to requests made by the Company.
As at the Balance Sheet date, there are no overdue principal or interest amounts payable to such vendors for delayed payments. The Company has generally made payments to MSME vendors within the time period stipulated under the MSME Act. There were minor instances of delay during the year; however, the related interest amounts are negligible and have been rounded off to zero.
(All amounts in million of Indian Rupees, unless otherwise stated)
The Company enters into supplier finance arrangements with finance providers to facilitate the early payment of dues on its behalf to the Company's vendors who may elect to factor their invoice through such financial institutions. The finance providers pay the amounts to a participating vendor in respect of invoices owed by the Company and receive settlement from the Company at a later date. By virtue of commercial agreements with the vendors, the Company remains obligated to settle invoices at the contractually agreed payment terms and is not impacted by the decision of vendor to obtain early financing from the finance providers. In this arrangement, no material extension of payment terms beyond those agreed with suppliers is offered to the Company by the finance providers. Further, the Company is not required to pledge any collateral to secure the transaction, and no fee is charged to the Company by the finance provider. The economic substance of the transaction is determined to be in nature of operating activity where the original contract with the vendors does not get substantially modified on entering into arrangement. Therefore, the Company has disclosed the amounts factored by vendors within trade payables because the nature and function of the liability remains the same as those of other trade payables. Disclosures of the supplier finance arrangement are as follows.
Non-cash changes
There were no foreign exchange differences that affected the liabilities under the supplier finance arrangements in either period. Payments made by the Finance providers to the vendors are treated as a non-cash item and settlement of dues to the Finance provider by the Company under this arrangement is treated as operating cash outflows because they continue to be part of normal operating cycle and reflect the substance of the payment for purchase of goods and services.
Note 24 - Employee Post-Retirement Benefits
The following are the employee benefit plans applicable to the employees of the Company, a) Gratuity (defined benefit plan)
In accordance with applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan"), covering eligible employees, Under the Gratuity Plan, vested employees are entitled to a lump-sum payment upon retirement, death, incapacitation, or termination of employment, based on their salary and length of service, The gratuity obligations are determined through actuarial valuation,
The Gratuity Plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees are entitled to specified gratuity benefits upon retirement or termination of employment after completion of five years of continuous service, or upon death while in employment, The amount of gratuity payable is determined based on the employee's length of service and salary at the time of retirement or termination,
c) Provident fund and others (defined contribution plan)
in addition to being covered under the gratuity plan described above, employees participate in a provident fund plan, which is a defined contribution plan. The Company makes annual contributions to a government-recognised provident fund based on a specified percentage of the salary of each eligible employee. The Company has no further obligation under the provident fund plan beyond making such contributions. Upon retirement or separation from service, employees become entitled to a lump-sum benefit, which is paid directly to them by the provident fund. During the year ended 31 March 2026, the Company contributed ' 103.51 million (31 March 2025: ' 92.35 million) towards the provident fund and other defined contribution plan.
Note 28 - Segment Reporting
Business segment:
The Chief Operating Decision Maker ("CODM") of the Company is the Board of Directors, which reviews the financial performance of the Company and makes strategic decisions. Based on the information reviewed by the CODM, the Company has identified a single reportable operating segment, namely Active Pharmaceutical Ingredients (API).
Geographical information:
The geographical segment disclosures presented below are based on the location of the Company's customers in respect of revenue. The disclosure of the carrying amounts of segment assets is based on the geographical location of such assets.
1 Within India
2 Outside India
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Note 29 - Commitments and Contingencies
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Particulars
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As at 31 March 2026
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As at 31 March 2025
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(i) Contingent Liabilities
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Claims against the Company not acknowledged as debts
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Disputed taxes and duties*
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48.16
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48.16
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‘Liability of excise duty on domestic clearance of Amiodarone pending with CESTAT Mumbai under The Central Excise Act, 1944.
(ii) Commitments
The estimated amount of contracts remaining to be executed on capital account, net of advances and not provided for, aggregated to ' 1056.78 million as at 31 March 2026 (31 March 2025 - ' 331.01 million).
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During the periods referred to above, there were no transfers amongst the different levels of the fair value hierarchy.
The fair value of all financial instruments measured at amortised cost is determined using discounted cash flow techniques, applying appropriate discount rates,
Trade receivables represent amounts receivable from customers arising from the sale of goods and the rendering of services,
Management considers that the carrying amounts of Trade and other receivables approximate their fair values,
Investments primarily comprise Investments in Mutual Funds, which are valued at their Net Asset Value (NAV) as at the Balance Sheet date and are classified as Level 1 of the fair value hierarchy
Bank balances and Cash comprise Cash on hand and Short-term deposits held by the Company, Carrying amounts of these assets approximate their fair values,
Trade and other payables primarily comprise amounts outstanding for trade purchases and ongoing operating expenses, Management considers that the carrying amounts of trade payables approximate their fair values,
Fair value hierarchy:
Level 1 : This category includes financial assets and liabilities that are measured, either entirely or substantially, based on quoted prices in active markets,
Level 2 : This category includes financial assets and liabilities that are measured using valuation techniques based on assumptions supported by observable inputs from current market transactions, These include instruments for which pricing is obtained from pricing services where quoted prices are not available in active markets, financial assets whose fair values are derived from broker quotations, and assets and liabilities valued using the Company's internal valuation models, provided that the significant inputs to such models are observable in the market,
Level 3 : This category comprises financial assets and liabilities measured using valuation techniques with significant unobservable inputs, Fair values are determined using models based on assumptions not derived from observable market data, while maintaining the fair value measurement objective of estimating an exit price from the Company's perspective, The main instruments in this category include unlisted equity investments and unlisted funds,
Valuation Technique used to determine Fair Value :
The fair value of all financial instruments measured at amortised cost is determined using discounted cash flow techniques, applying a discount rate derived from the relevant bank borrowing rates,
The fair value of all financial instruments measured at fair value through profit or loss (FVTPL) is determined based on their net asset value (NAV),
Note 31 - Leases
Company as Lessee
The Company has applied the short-term and low-value lease exemptions under Ind AS 116, The lease term comprises the non-cancellable period and renewal options exercisable at the discretion of the lessee, to the extent considered reasonably certain,
Note 32- Risk Management Objectives and Policies
The Company is exposed to various financial risks arising from its operating and investing activities. The Company's overall risk management strategy focuses on proactively securing its short- to medium-term cash flows and minimising exposure to adverse movements in financial markets.
The Company does not engage in the trading of financial assets for speculative purposes, nor does it write or issue options.
Financial assets that potentially subject the Company to concentrations of credit risk primarily comprise cash equivalents, trade receivables, other receivables, investment securities, and deposits. By their nature, all such financial instruments involve an element of risk, including the risk of non-performance by counterparties.
The Company's cash equivalents and deposits are held in reputed banks, which management believes are of high credit quality and hence no impairment allowances has been recognized.
The Company's trade and other receivables are actively monitored through periodic credit evaluations to assess the creditworthiness of customers to whom credit terms are granted and to mitigate the risk of significant concentrations of credit risk.
Foreign Currency sensitivity
The foreign currency sensitivity analysis has been performed in relation to US Dollar (USD), Euro (EUR), Great Britain Pound (GBP), Russian Ruble (RUB), Swiss Franc (CHF) and Canadian Dollar (CAD). These are unhedged foreign currency.
Considering the volatility in the US Dollar, with potential movements of up to 10%, the sensitivity analysis has been prepared based on a 10% strengthening and weakening of the currency. This is disclosed to present the comparable impact of foreign exchange fluctuations on the Company's financial results.
The Company's Cash Equivalents and Deposits are held with reputed Banks, which Management considers to be of high credit quality. Accordingly, no impairment allowance has been recognised.
Trade receivables are generally due within a period of 60 to 180 days. As a matter of standard business practice, most customers are extended a credit period of approximately 180 days. These receivables are non-interest bearing, which is consistent with prevailing industry practices. All trade receivables are subject to credit risk. However, the Company does not consider there to be any significant concentration of credit risk with respect to trade and other receivables, as the amounts recognised represent a large number of receivables from a diverse customer base.
Trade receivables are typically unsecured and arise from revenue recognised from customers. Credit risk is managed independently by each business segment through established credit approval processes, setting of credit limits, and ongoing monitoring of the creditworthiness of customers to whom credit terms are granted in the normal course of business. Pursuant to the adoption of Ind AS 109 Financial Instruments, the Company applies the Expected Credit Loss (ECL) model to assess impairment losses, if any, on trade receivables. However, based on the Company's historical experience, which indicates no material bad debts in prior periods, and considering that there are no material receivables outstanding for more than six months as at the reporting date, management has concluded that no material expected credit loss allowance is required.
The Company continuously monitors defaults by customers and other counterparties, whether identified individually or collectively, and incorporates such information into its credit risk management controls. The Company's policy is to transact only with creditworthy counterparties in order to mitigate the risk of financial loss.
The Company's Management considers that all of the above financial assets that are not impaired as at each reporting date are of good credit quality, including those that are past due. None of the Company's financial assets are secured by collateral or supported by other credit enhancements.
In respect of trade and other receivables, the Company's exposure to credit risk relating to any single counterparty or to a group of counterparties with similar characteristics is considered to be negligible. The credit risk associated with liquid funds and other short-term financial assets is also considered negligible, as the counterparties are reputable banks with high-quality external credit ratings.
Investments comprise quoted mutual funds and unquoted equity shares that are considered to be low risk in nature.
Liquidity risk analysis
The Company manages its liquidity requirements by closely monitoring cash outflows arising in the normal course of business. Liquidity needs are monitored across various time bands, including on a day-to-day and week-to-week basis, as well as through a rolling 30-day cash flow forecast. In addition, long-term liquidity requirements covering 180-day and 360-day outlook periods are identified and reviewed on a monthly basis.
The Company maintains adequate levels of cash and marketable securities to meet its short-term liquidity requirements, including those arising over a period of up to 30 days. Long-term liquidity requirements are additionally supported through the availability of adequate committed credit facilities and the Company's ability to liquidate long-term financial assets, as and when required.
Note 1: The Company has not claimed the excess amount available for set-off from the preceding financial year.
Note 2: The amount of shortfall represents the unspent amount on ongoing projects, which has been deposited in separate bank account within the stipulated timelines and will be spent in accordance with applicable provisions of the Companies Act, 2013.
Note 3a: Promoting healthcare, education, environmental sustainability, Community Development, etc.
Note 3b: Promoting healthcare, education, rural development, empowering women, environmental sustainability, Rural sports, Community Development, etc.
Note 35 - Comparatives
Certain prior-year amounts have been reclassified to ensure consistency with the current year's presentation. Accordingly, comparative figures have been adjusted to conform to the current year's presentation. These reclassifications had no impact on the reported results of operations.
Note - 37
(i) The Company does not hold any Benami property, and no proceedings have been initiated or are pending against the Company for holding any Benami property.
(ii) The Company has not entered into any transactions with companies that have been struck off.
(iii) The Company does not have any charges or satisfactions that remain unregistered with the Registrar of Companies (ROC) beyond the statutory period.
(iv) The Company has not traded in or invested in any cryptocurrency or virtual currency during the financial year.
(v) The Company has no transactions which were not recorded in the books of account and have been surrendered or disclosed as income during the year under the Income-tax Act, 1961, pursuant to any search, survey, or other proceedings.
(vi) No funds have been advanced, loaned, or invested by the Company (whether from borrowed funds, securities premium, or any other sources or kind of funds) to any person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding—whether recorded in writing or otherwise—that the Intermediary shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiaries.
(vii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding—whether recorded in writing or otherwise—that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Parties ("Ultimate Beneficiaries"), or provide any guarantee, security, or the like on behalf of the Ultimate Beneficiaries.
(viii) The Company has been sanctioned borrowings/facilities from banks secured against current assets. The quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of account.
(ix) The Ministry of Corporate Affairs (MCA), pursuant to the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, as amended by the Companies (Accounts) Amendment Rules, 2021, has mandated that companies using accounting software for maintaining their books of account shall use only such software which has a feature of recording an audit trail (edit log) of each and every transaction, creating an edit log of every change made in the books of account along with the date of such changes, and ensuring that the audit trail feature cannot be disabled.
The Company has used accounting software for maintaining its books of account which includes an audit trail (edit log) feature, and the same was enabled at the application level. However, during the year ended 31 March 2026, the feature of recording audit trail (edit log) at the database level to capture any direct data changes was not enabled in the said accounting software.
Further, the audit trail records maintained at the application level have been preserved by the Company in accordance with the statutory record-retention requirements.
Note 38 - Authorisation of Financial Statements
The Financial Statements were approved by the Board of Directors at its meeting held on 14th May, 2026
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