p) Provisions (other than for employee benefits)

A provision is recognized if, as a result of a past event,
the Company has a present legal or constructive
obligation that can be estimated reliably, and it is
probable that an outflow of economic benefits will
be required to settle the obligation. If the effect of
the time value of money is material, provisions are
determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks
specific to the liability. Where discounting is used, the
increase in the provision due to the passage of time is
recognized as a finance cost.

The amount recognized as a provision is the best
estimate of the consideration required to settle the
present obligation at reporting date, taking into
account the risks and uncertainties surrounding
the obligation. When some or all of the economic
benefits required to settle a provision are expected
to be recovered from a third party, the receivable is
recognized as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliably. The
reimbursement is treated as a separate asset.
Provisions are reviewed at each reporting date and
adjusted to reflect current best estimates.

q) Contingent liabilities and contingent assets

Contingent liability is a possible obligation arising 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 entity or a present obligation that arises
from past events but is not recognized because it is
not probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation or the amount of the obligation cannot
be measured with sufficient reliability. The Company
does not recognize a contingent liability but discloses
its existence in the standalone financial statements.

Contingent assets usually arise from unplanned
or other unexpected events that give rise to the
possibility of an inflow of economic benefits to
the entity. Contingent assets are recognized when
the realization of income is virtually certain, then
the related asset is not a contingent asset and its
recognition is appropriate. A contingent asset is
disclosed where an inflow of economic benefits is
probable.

Contingent liabilities and contingent assets are
reviewed at each reporting date and adjusted to
reflect the current best estimates.

r) Commitments

Commitments include the amount of purchase order
(net of advances) issued to parties for completion of
assets. Commitments are reviewed at each reporting
date.

s) Operating segment

An operating segment is a component of the Company
that engages in business activities from which it
may earn revenues and incur expenses, including
revenues and expenses that relate to transactions
with any of the Company's other components, and for
which discrete financial information is available. All
operating segments' operating results are reviewed
regularly by the Company's Chief Operating Decision
Maker (CODM) to make decisions about resources
to be allocated to the segments and assess their
performance.

t) Cash and cash equivalents

For the purpose of presentation in the Statement of
Cash Flows, cash and cash equivalents include cash
in hand, demand deposits held with banks, other short¬
term highly liquid investments with original maturities
of three months or less that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.

u) Statement of Cash Flows

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payments and item of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

v) Earnings per share

Basic earnings/ (loss) per share are calculated
by dividing the net profit/ (loss) for the period

attributable to equity shareholders by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the year is adjusted for
events of bonus issue and share split. For the purpose
of calculating diluted earnings/ (loss) per share, the
net profit or loss for the period attributable to equity
shareholders and the weighted average number of
shares outstanding during the period are adjusted for
the effects of all dilutive potential equity shares.

w) Corporate Social Responsibility (“CSR") expenditure

CSR expenditure incurred by the Company is charged
to the Statement of the Profit and Loss.

x) Share capital

Equity shares: Incremental costs directly attributable
to the issue of equity shares are recognized as
a deduction from equity. Income tax relating to
transaction costs of an equity transaction is
accounted for in accordance with Ind AS 12.
Preference shares: The Company compulsorily
convertible preference shares (“CCPS") are classified
as financial liabilities, because the instrument holders,
in terms of the underlying agreement, had exit rights
including requiring the Company to buy back shares
held by them where upon the conversion ratio is also
not fixed. Since both the conversion and redemption
feature is conditional upon an event not under the
control of the issuer, and may require entity to deliver
cash, which issuer cannot avoid, or convert the CCPS
into equity shares, where the fixed for fixed condition
is not met, therefore, CCPS have been considered a
“hybrid" financial liability.

NOTE 4 - RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs (“MCA") notifies new
standard or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. During the year ended 31 March 2025,
MCA has notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company
w.e.f. 01 April 2024. The Company has reviewed the
new pronouncements and based on its evaluation has
determined that it does not have any significant impact in
its financial statements. As at 31 March 2025, MCA has not
notified any new standards or amendments to the existing
standards which are applicable to the Company

NOTE 18 - SHARE CAPITAL (Contd.)

# The Company has allotted 1,412,430 equity shares having face value of ' 10 each in the conversion ratio of 1:1
towards Cumulative Compulsorily Convertible Preference Shares (“CCCPS") on 01 December 2023 at a price of ' 448
per share.

The Company has allotted 669,642 Pre Initial Public Offer (IPO) equity shares having face value of '10 each on 03
December 2023 at a price of ' 448 per share.

The Company, at its IPO meeting held on 26 December 2023 approved allotment of 7,142,857 Equity Shares of '10 each
pursuant to Initial Public Offering at a securities premium of ' 438 per share under Fresh Issue and offer for sale of
5,580,357 Equity Shares at an Offer Price of ' 448 per Equity Share, to the respective applicants in various categories,
in terms of the basis of allotment approved in consultation with the authorized representative of BSE Limited and NSE.
The equity shares of the Company were listed on BSE Limited and National Stock Exchange of India Limited on 29
December 2023. Refer Note 48

b. Defined benefit plans
Gratuity

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed
five years of service are entitled to specific benefit. The level of benefit provided depends on the member's length of
service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for each
completed year of service. The same is payable on termination of service or retirement or death whichever is earlier.
The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as
at the reporting date using the projected unit credit method, which recognizes each year of service as giving rise to
additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligations are measured at the present value of the estimated future cash flows. The discount rate used for
determining the present value of the obligation under defined benefit plans is based on the market yields on government
bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are recognized immediately in the
Other Comprehensive Income (OCI).

This is an unfunded benefit plan for qualifying employees. This scheme provides for a lump sum payment to vested
employees at retirement, death while in employment or on termination of employment. Vesting occurs upon completion
of five years of service.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the
defined benefit obligation will tend to increase.

Salary inflation risk:

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and
depends upon the combination of salary increase, discount rate and vesting criteria.

b. The fair value of non-current assets and non-current liabilities (except lease liabilities) are valued based upon discounted
cash flow valuation method. The valuation model considers the present value of expected payments, discounted using
risk adjusted discount rate. The own non-performance risk was assessed to be insignificant.

c. The fair valuation of financial assets and liabilities with short-term maturities is considered to be approximately equal
to their carrying amount, due to their short-term nature.

There are no transfers between level 1, level 2 and level 3 during the year presented.

NOTE 42 (a) - FINANCIAL RISK MANAGEMENT
Risk management framework

The Company is exposed to market risk, credit risk and liquidity risk. The Company's board of director oversees the
management of these risks. The Company's board of director is responsible to ensure that Company's financial risk
activities which are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company's policies and risk objectives. The Board of directors reviews and agrees policies
for managing each of these risks, which are summarized below.

(i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises interest rate risk and currency risk financial instruments affected by market
risk include trade receivables, trade payables and borrowings. The objective of market risk management is to manage
and control market risk exposures within acceptable parameters while optimizing the return.

(a) Interest Rate Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily
to the Company's borrowings with floating interest rates. The Company is exposed to interest rate risk because
funds are borrowed at floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for
changes in variable interest rate. The exposure of the Company's borrowing to interest rate changes as reported
to the management at the end of the reporting year are as follows:

The exposure of the Company's borrowing to floating interest rate as reported at the end of the reporting year are
as follows:

(b) Currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. The Company is exposed to the effects of fluctuation in the prevailing
foreign currency exchange rates on its financial position and cash flows. Exposure arises primarily due to
exchange rate fluctuations between the functional currency and other currencies from the Company's operating
activities.

The Company does not enter into trade financial instruments including derivative financial instruments for hedging
its foreign currency risk.

Exposure to currency risk:

The carrying amount of the Company's foreign currency denominated monetary assets and monetary liabilities at
the end of each reporting year are as follows:

(ii) Credit risk

Credit risk is the risk that counterparty will not meet its obligations 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, loans and investments) and from its financing activities, including deposits with banks. Management has
a credit policy in place and the exposure to credit risk is monitored on an ongoing basis.

(a) Trade receivables

Customer credit risk is managed as per the Company's established policy, procedures and control relating to
customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating
scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables are regularly monitored.

Based on internal assessment which is driven by the historical experience/current facts available in relation to
default and delays in collection thereof, the credit risk for trade receivables is considered low. The Company
estimates its allowance for trade receivable using lifetime expected credit loss. Individual receivables which are
known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of
the loss is recognized in the Statement of Profit and Loss within other expenses.

The Company's exposure to credit risk for trade receivables by geographic region is as follows:

Out of the above foreign currency exposures, none of the monetary assets and liabilities are hedged by a derivative
instrument or otherwise.

Sensitivity analysis:

The following table details the Company's sensitivity to a 5% increase and decrease in the ' against relevant
foreign currencies. 5% is the rate used in order to determine the sensitivity analysis considering the past trends
and expectations of the management for changes in the foreign currency exchange rate. The sensitivity analysis
includes the outstanding foreign currency denominated monetary items and adjust their transaction at the year
end for 5% change in foreign currency rates. A positive number below indicates a increase in profit or equity where
the ' strengthens 5% against the relevant foreign currency. For a 5% weakening of the ' against the relevant
foreign currency, there would be a comparable impact on the profit or equity balance below would be negative.
This analysis is performed on foreign currency denominated monetary financial assets and financial liabilities
outstanding as at the year end. This analysis assumes that all other variables, in particular interest rates, remain
constant and ignores any impact of forecast sales and purchases.

(b) Security deposits

The Company furnished security deposits as margin money deposits to bank. The Company considers that its
deposits have low credit risk or negligible risk of default as the parties are well established entities and have
strong capacity to meet the obligations. Also, where the Company expects that there is an uncertainty in the
recovery of deposit, it provides for suitable impairment on the same.

(c) Financial guarantee

The Company provides financial guarantees to banks in respect of credit facilities availed by the subsidiaries from
banks to cover the loss on the credit extended to subsidiaries. The Company manages and controls credit risk by
setting limits on the amount of risk it is willing to accept for individual entities within the group, and by monitoring
exposures in relation to such limits. It is the responsibility of the Board of directors to review and manage credit risk.
The Company has assessed the credit risk associated with its financial guarantee contracts for allowance for
Expected Credit Loss (ECL) as at the year end. The Company makes use of various reasonable supportive forward¬
looking parameters which are both qualitative as well as quantitative while determining the change in credit risk
and the probability of default. The Company's maximum exposure relating to financial guarantees as on 31 March
2025 is ' Nil million (31 March 2024: ' 300 million). Considering the creditworthiness of entities within the group
in respect of which financial guarantees have been given to banks, the management believes that the subsidiaries
have a low risk of default and do not have any amounts past due. Accordingly, no allowance for expected credit
loss needs to be recognised as at year end.

(iii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to
meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash
management system. It maintains adequate sources of financing including loans from banks at an optimized cost.

The table below summarizes the maturity profile of the Company's financial liabilities based on contractual undiscounted
payments:

(iv) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the
same geographical region, or have economic features that would cause their ability to meet contractual obligations
to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative
sensitivity of the Company's performance to developments affecting a particular industry. In order to avoid excessive
concentrations of risk, the Company's policies and procedures include specific guidelines to focus on the maintenance
of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

NOTE 42 (b) - CAPITAL RISK MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company's capital management is to
maximize the shareholder value.

NOTE 46 - OTHER MATTER

During the year ended 31 March 2024, The Company has acquired Sharon Bio Medicine Limited (“Sharon") through Univentis
Medicare Limited (“UML") , an entity undergoing the corporate insolvency resolution process (“CIRP") under the Insolvency
and Bankruptcy Code, 2016 (“IBC") before the Hon'ble National Company Law Tribunal, Mumbai Bench (“NCLT") since April
2017. Sharon is engaged in the business of manufacturing of intermediates and active pharmaceutical ingredients and
finished dosages. It also offers contract manufacturing services for formulations and performs pre-clinical and toxicology
research services. In accordance with the terms of the Resolution Plan approved by the NCLT, UML infused ' 1,954.00
million (' 1,944.00 million as loan and ' 10.00 million as equity share capital) into Sharon on 26 June 2023 and closure of
implementation pursuant to the Resolution Plan was achieved on 30 June 2023. Following such infusion of funds by UML,
Sharon became a wholly owned subsidiary of UML. UML availed a term loan of 1,450.00 million from HDFC bank for purpose
of aforesaid infusion into Sharon. The Guarantee for this loan was given by the holding Company which was subsequently
satisfied on 21 November 2023. The term loan is fully repaid by the UML during the financials year 2023-24.

NOTE 47 - OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company does not have any transactions/outstanding balances with companies struck off under section 248 of
the Companies Act, 2013 or section 560 of the Companies Act, 1956.

(iii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the current or previous year.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(“Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. Further
the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been
complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering Act,
2002 (15 of 2003).

(vi) 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.

(vii) The Company has not 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 assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961

(viii) The Company have not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

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

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

(xi) The Company is not a Core Investment Company (as per the provisions of the Core Investment Companies (Reserve
Bank) Directions, 2016).

(xii) The Company has used borrowing for the purpose for which they have been obtained.

NOTE - 48

The Company has completed its IPO of 12,723,214 equity shares of face value ' 10 each at an issue price of ' 448 per share
(including a share premium of ' 438 per share) and as a result the equity shares of the Company were listed on National
Stock Exchange of India Limited ('NSE') and BSE Limited ('BSE') on 29 December 2023. The issue comprised of a fresh
issue of 7,142,857 equity shares aggregating to ' 3,200.00 million and offer for sale of 5,580,357 equity shares by selling
shareholders aggregating to ' 2,500.00 million.

The Company has estimated ' 478.39 million as IPO related expenses and allocated such expenses between the Company ('
272.79 million of this amount, ' 263.17 million has been adjusted to the security premium account) and selling shareholders
(' 205.60 million) in proportion to the equity shares allotted to the public as fresh issue by the Company and under offer for
sale by selling shareholder respectively. Out of the total IPO proceeds the fund available in escrow account is ' 2.13 million
for remitting funds for pending IPO related expenses (including ' 3.88 million is payable to selling shareholders on account
of IPO expenses incurred on behalf of the Company).

The Company has received an amount of ' 2,931.09 million (net of IPO expenses of ' 268.91 million) from proceeds out of
fresh issue of equity shares. The utilization of the net IPO proceeds is summarized below

As per our report of even date attached.

For B S R & Co. LLP For and on behalf of Board of Directors of

Chartered Accountants Innova Captab Limited

Firm registration number: 101248W/W-100022

Gaurav Mahajan Manoj Kumar Lohariwala Vinay Lohariwala

Partner Chairman & Wholetime Director Managing Director

Membership Number: 507857 DIN: 00144656 DIN: 00144700

Place: Panchkula Lokesh Bhasin Neeharika Shukla

Date: 19 May 2025 Chief Financial Officer Company Secretary

M.No.: A42724

Place: Panchkula
Date: 19 May 2025