p. Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present
obligation, as a result of past events and when a reliable
estimate of the amount of obligation can be made at the
reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best
estimates. Provisions are discounted to their present values,
where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only
by future events not wholly within the control of
the Company; or

• Present obligations arising from past events where
it is not probable that an outflow of resources will be
required to settle the obligation or a reliable estimate
of the amount of the obligation cannot be made.

Contingent assets are neither recognized nor disclosed.
However, when realization of income is virtually certain,
related asset is recognized.

q. Income taxes

Tax expense recognized in standalone statement of profit
and loss consists of current and deferred tax except to the
extent that it relates to items recognised in OCI or directly
in equity, in which case it is recognised in OCI or directly in
equity respectively.

Calculation of current tax is based on tax rates and tax
laws that have been enacted for the reporting period and
any adjustment to tax payable in respect of previous years.
Current tax assets and tax liabilities are offset where the
Company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously.

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities in the

standalone financial statements and the corresponding tax
bases used in the computation of taxable profit. Deferred
tax is measured at the tax rates that are expected to be
applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively
enacted by the end of the reporting period. Deferred tax
liability are generally recognised for all taxable temporary
differences. Deferred tax assets are generally recognised
for all deductible temporary differences to the extent that is
probable that taxable profits will be available against which
those deductible temporary differences can be utilised.
Deferred tax assets and liabilities are offset if there is a
legally enforceable right to set off corresponding current
tax assets against current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to income taxes
levied by the same tax authority on the Company.

Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable
that the related tax benefit will be realised. Withholding tax
arising out of payment of dividends to shareholders under
the Indian Income tax regulations is not considered as tax
expense for the Company and all such taxes are recognised
in the statement of changes in equity as part of the
associated dividend payment.

r. Earnings per share

Basic earnings per share is calculated by dividing the
net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable to
equity shareholders and the weighted average number of
equity shares outstanding during the year for the effects of
all dilutive potential equity shares.

s. Segment reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

t. Goods and Service Tax Input credit

Goods and Service tax input credit is accounted for in the
books in the year in which the underlying service received
is accounted and when there is no uncertainty in availing /
utilising the credits.

u. Operating cycle

Based on the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company
has determined its operating cycle as 12 months. The above
basis is used for classifying the assets and liabilities into
current and non-current as the case may be.

The Company measures the loss allowance for trade receivables at an amount equal to ECL. The expected credit losses on trade receivables are
estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position,
adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of
both the current as well as the forecast direction of conditions at the reporting date.

The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. Further
the Company also establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables
based on the past and recent collection trend.

vii. Shares reserved for issue under options

(a) Sai Employee stock option scheme - 2008 (“SESOS 2008”)

The Company established a plan SESOS approved by the Shareholders at the Annual and Extraordinary General Meetings held on 11
September 2008 and 30 March 2009 respectively. As per the scheme, maximum number of employee stock options are restricted to 10%
of paid up share capital of the Company. Out of which, 50% of the options granted shall vest at the end of two years from the grant date
and the balance 50% of the options shall vest at the end of four years from the grant date. The vested options can be exercised by the
employee during his term of employment with the Company.

Under this scheme, the company granted additional employee stock options approved by the Shareholders at the Extraordinary General
Meeting held on 25 July 2018. The options granted shall vest 20% at the end of every year from the grant date for 5 years. The vested
options can be exercised by the employee during their term of employment with the Company.

Management ESOP scheme - 2018 (“MES 2018”)

The Company established a plan MES 2018 approved by the Shareholders at the Extraordinary General Meeting held on 25 July 2018.

As per the scheme maximum number of shares reserved under this scheme is 4% of the paid up equity capital of the Company on a fully
diluted basis as on the Effective Date. The options granted shall vest 20% at the end of every year from the grant date for 5 years. The
vested options can be exercised by the employee during their term of employment with the Company.

The Company amended vide approval from Shareholders in the Extraordinary General Meeting*, the plan MES 2018 on 25 March 2022 and
09 June 2023 and further amended the SESOS 2008 and MES 2018 plan on 04 July 2024. Post the amendment, both the MES 2018 and
SESOS 2008 have similar terms. The options granted shall vest within a period of 5 years and as per the terms provided in the notice of
grant. The vested options can be exercised by the employee during their term of employment with the Company.

The terms of the above schemes provide that each option entitles the holder to one equity share of H. 1 each and that the options can be
settled only by way of issue of equity shares. The options granted are time and performance based for SESOS 2008 and MES 2018.

(b) During the year ended 31 March 2026, the Company had incurred stock compensation cost of H. 21.04 (31 March 2025: H. 24.78) towards the
above schemes.

Nature and purpose of reserves

(a) Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium and adjusted for transaction cost on fresh
issue of equity shares. During the year ended 31 March 2026, the Company issued 33,64,845 equity share of face value of H. 1 each (31 March
2025 3,17,84,049 Equity share of face value of H. 1 each)

(b) Capital reserve

Capital reserve pertains to the excess of net assets taken, over the cost of consideration paid pursuant to amalgamation of Advantium Pharma
Private Limited with the Company in the earlier year and on forfeiture of certain share warrants issued in the earlier years. The Company uses
capital reserve for transactions in accordance with the provisions of the Act.

(c) Employee stock options outstanding account

Employee stock options outstanding account relates to share options granted by the Company to its employees under its employee share option
plan. These will be transferred* to Retained earnings and Security premium after exercise of the underlying options.

(d) Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions
paid to shareholders.

(e) Cash flow hedge reserve

Cash flow hedge reserve represents effective portion of cash flow hedges taken to Other comprehensive income.

(f) Shares pending allotment

Represents amount received from employees upon exercise of option under SESOS plan 2008. Pending allotment as of 31 March 2025, this
amount has been shown under share application money pending allotment.

(b) Gratuity

The Company provides gratuity benefits to its employees under a defined benefit plan (“Gratuity Plan”) in accordance with the Payment of
Gratuity Act, 1972. Under the Gratuity Plan, Permanent employees are eligible for gratuity upon completion of at least five years of continuous
service and Fixed-term employees are eligible upon completion of one year of continuous service, as per applicable regulations. The benefit
is calculated as 15 days of last drawn salary for each completed year of service, with service of six months or more rounded off to a full year,
subject to a maximum limit of H. 20 lakhs (as prescribed under the Act). This defined benefit plan exposes the company to actuarial risk such as
longevity, interest rate risk and inflation risk.

The weighted average duration of the defined benefit obligation as at 31 March 2026 is 2.81 years (As at 31 March 2025: 2.79 years)

The Company provides for compensated absences to its employees. The employees can carry-forward a portion of the unutilised accrued
compensated absences and utilise it in future service years. During the year ended 31 March 2026, the Company has incurred an expense on
compensated absences amounting to H. 62.81 (31 March 2025 : H. 49.58). The Company determines the expense for compensated absences basis
the actuarial valuation of the present value of the obligation, using the Projected Unit Credit Method.

(ii) Details of CSR expenditure :

As required under Section 135 of the Companies Act, 2013, a Corporate Social Responsibility (CSR) committee has been formed by the Company.
The Company has spent the CSR amount towards:

1. Preventive healthcare initiatives to improve community well-being.

2. Education (including special education) and vocational skill development, with focus on differently abled individuals.

3. Livelihood development and income-generation initiatives for inclusive growth.

4. Environmental sustainability, including resource conservation, quality of air/water/soil and protection of biodiversity, animal welfare
and agroforestry.

Note: On 21 November 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on
Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, (‘Labour Codes') which consolidate twenty-nine existing
labour laws into a unified framework governing employee benefits during employment and post-employment. The Labour Codes, amongst other things
introduce a change in the definition of wages. The Company has assessed the financial implications of this change which has resulted in increase in
gratuity liability arising out of past service cost and increase in compensated absences liability of Rs. 80.01. Considering the impact arising out of an
enactment of the new legislation is an event of non-recurring nature, the Company has presented this incremental amount as “Exceptional Item”, for the
year ended 31 March 2026.

In case of any further clarification from the Government on other aspects of the Labour Codes, the Company will evaluate and account for differential
impact, if any, in subsequent periods.

37. Fair value measurements

Risk management framework:

The Company's principal financial liabilities, comprise borrowings, lease liabilities, trade and other payables. The main purpose of these financial
liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, cash and cash
equivalents, other bank balances and FVTPL investments that derive directly from its operations. The Company also holds FVTOCI investments and
investment in its subsidiary.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's Board of Directors oversees the management of these risks. The
Company's Board of Directors is supported by the senior management that advises on financial risks and the appropriate financial risk governance
framework for the Company. The senior management provides assurance to the Company's Board of Directors that the Company's financial risk
activities 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.

(iii) Transfer between Level 1 and 2

There have been no transfers from Level 2 to Level 1 or vice-versa during the year ended 31 March 2026 and 31 March 2025.

38. Financial instruments risk management

A. 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 two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings, lease
liabilities, deposits, trade receivables and other financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2026 and 31 March 2025. The analyses exclude the impact
of movements in market variables on the carrying values of gratuity and other post retirement obligations; provisions; and non-financial assets
and liabilities.

i. Interest rate risk:

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest rates.
The management monitors the interest rate movement and manages the interest rate risk based on its policies, which include entering
into interest rate swaps as considered necessary. The Company's investment in deposits with banks and financial institutions carries fixed

rate of interest. The Company does not account for any fixed rate financial assets at fair value through profit or loss. Therefore a change in
interest rates at the reporting date would not affect profit or loss.

Interest rate sensitivity analysis

The sensitivity analysis below has been determined for borrowings assuming the amount of borrowings outstanding at the end of the
reporting period was outstanding for the whole year. A 10 basis points increase or decrease in case of foreign currency borrowings and
50 basis points increase or decrease in case of rupee borrowings is used when reporting interest rate risk internally to key management
personnel and represents management's assessment of the reasonably possible change in interest rate.

If interest rate had been 10 basis points higher/lower in case of foreign currency borrowings and 50 basis points higher/ lower in
case of rupee borrowings and all other variables were held constant, the Company's profit for the year ended 31 March 2026 would
decrease/increase by
H. 4.76 (31 March 2025: H. 5.82).

ii. Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure shall fluctuate because of change in foreign
exchange rates. The Company's foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses,
(primarily in US Dollars and Euros) and foreign currency borrowings (primarily in US Dollars). As a result, if the value of the Indian rupee
appreciates relative to these foreign currencies, the Company's revenues and expenses measured in Indian rupees may decrease or
increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent
periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative
financial instruments, such as foreign exchange forward contracts, currency swap contracts and foreign currency financial liabilities, to
mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised
assets and liabilities.

The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted
transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in
other comprehensive income and re-classified in the income statement as revenue in the period corresponding to the occurrence of the
forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the Statement of Profit and Loss.

B. Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to financial loss.
The credit risk arises principally from its operating activities (primarily trade receivables) and from its financing activities, including deposits with
banks and other financial instruments.

The Company has established a credit mechanism under which each new customer is analysed individually for creditworthiness before the
Company's standard payment and delivery terms and conditions are offered. The Company's review includes external ratings, where available and
other publicly available financial information. Outstanding customer receivables are regularly monitored.

The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to H. 3,697.10 (31 March 2025: H. 3,528.78).
(refer note 14)

C. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains
flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows.
The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company's liquidity management policy
involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

The Company's principal sources of liquidity are the cash flows generated from operations. Further the Company also has long term borrowings
and working capital facilities which the management believes are sufficient for its current requirements. Accordingly, no liquidity risk is perceived.

Maturities of financial liabilities

The tables below analyse the Company's financial liabilities into relevant maturity groupings based on their undiscounted contractual maturities
for all non-derivative financial liabilities.

39. Capital risk management

The Company's objective when managing capital is to safeguard the Company's ability to continue as a going concern in order to provide returns for
shareholders and benefits for stakeholders and to maintain an optimal capital structure to reduce the cost of capital. Hence, the Company may adjust
any dividend payments, return capital to shareholders or issue new shares or sell assets to reduce debt. Total capital is the equity as shown in the
statement of financial position. Currently, the Company primarily monitors its capital structure on the basis of the following gearing ratio. Management
is continuously reviewing its strategies to optimize the returns and reduce the risks. It includes plans to optimize the financial leverage of the Company.

(d) Transaction with related parties

In accordance with the applicable provisions of the Income Tax Act, 1961, the Company is required to use certain specified methods in assessing
that the transactions with the related parties, are carried at an arm's length price and is also required to maintain prescribed information and
documents to support such assessment. The appropriate method to be adopted will depend on the nature of transactions / class of transactions,
class of associated persons, functions performed and other factors as prescribed. Based on certain internal analysis carried out, management
believes that transactions entered into with the related parties were carried out at arms length prices. The Company is in the process of updating
the transfer pricing documentation for the financial year ended 31 March 2026. In opinion of the management, the same would not have an impact
on these financial statements.

41. Segment reporting

The management has assessed the identification of reportable segments in accordance with the requirements of Ind AS 108 ‘Operating Segment'and
believes that the Company has only one reportable segment namely “Contract research, development and manufacturing”. Geography-wise details of
the Company's revenues from external customers and its non-current assets (other than financial instruments, investments accounted for using the
equity method, deferred tax assets and post-employment benefit assets) and revenue from major customers are given below:

(c) Notes on Contingent liabilities

(i) The Company has received an Order from the Commissioner (Appeals), Hyderabad for a demand of H. 7.25 for the period November 2007
to March 2012 on the ground that the Company has not complied with the conditions of Notification No 23/2003 - CE dated 31 March 2003.
As per the said notification, an Export Oriented Unit (EOU) can clear the goods into Domestic Tariff Area (DTA) on payment of excise duty
at a concessional rate upto 50% of the Free on Board (FOB) value of the exports subject to the condition that the said exported goods
are similar to that of goods sold into DTA. The Central Excise authorities have held that the goods sold in DTA are different from that of
the goods which are exported and accordingly, demand has been raised along with interest and penalty. The Company has filed an appeal
before the Central Excise and Service Tax Appellate Tribunal (‘CESTAT') and waiting for personal hearing.

(ii) The Company has received an Order from the Commissioner (Appeals), Central Excise, Pune for a demand of H. 12.36 for the period
July 2012 to December 2014 on the ground that the Place of Provision of Service with respect to Drug Metabolism and Pharmacokinetic
(DMPK) services rendered by the Company is in India and as such, there is no export of service by the Company in view of Rule 4 of Place
of Provision of Service Rules, 2012 (POPS Rules) . The Company has filed an appeal before the CESTAT Pune on 27 April 2015 which is
rejected. Thereafter, the Company has filed an appeal before the Honourable High Court on 09 December 2019 and Personal Hearing is
attended on 27 February 2020. Appeal has been admitted by High court on 05 July 2022 and waiting for personal hearing.

(iii) The Company had three Non resident Indians on its rolls covered under the definition of International Workers as per the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952. Based on the Government Order, in June 2017, the Company suo moto made a
payment of provident fund along with the applicable interest rates.

However, on 25 April 2018, the Company received a notice from the Department stating that from the period 01 November 2008 to 31
March 2018, the Company had delays in deposit of Provident fund amount and accordingly, charged interest and damages under Section
14B and Section 7Q of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 to the extent of H. 13.15 and H. 21.89 for
interest and damages respectively.

The Company has represented the case stating that interest payments were made appropriately. The PF authorities took such interest
payment on record and gave a corrigendum stating the same.

The Company is still contesting the damages payment of H. 21.89. The Company addressed a letter dated 22 October 2020 to the Regional
Provident Fund Commissioner, requesting it to refrain from taking any such coercive action against the Company and reserved its right to
exercise its rights and remedies under law. However, since no presiding officer had been appointed for hearing matters before the Central
Government Industrial Tribunal (“CGIT”) at that time, the Company filed the present writ petition bearing Writ Petition No. 19867 of 2020
against the RPFC for the setting aside of the Impugned Order as being arbitrary, illegal and violative of Article 14 of the Constitution of
India. The matter was listed on 19 November 2020, wherein, the High Court passed an interim order granting a stay on the Impugned
Order. However, as on date, there is no further order with regard to the said damages. Apart from the proceedings before the High Court of
Telangana, an appeal was also filed by the Company challenging the Impugned Order before the CGIT under Section 7-I of the EPF Act. The
matter was listed for admission on 26 April 2021. The CGIT, vide, an order passed on 26 April 2021, observed that the present appeal was
admitted subject to the final order passed by the High Court of Telangana. The said order held that the application for stay as filed by the
Company would be considered upon obtaining such a final order.

(iv) The Company has received an Order dated 25 March 2025 from the Income tax authorities relating to assessment year 2019-20 for an
amount of H. 8.74, treating the Company as ‘Assessee in default' due to non-deduction of TDS on remittances made to certain vendor
outside of India. The Company filed an appeal before the CIT (A) on 23 Apr 25 and waiting for personal hearing.

(v) The Company has received an Order from the Assessment Unit, Income Tax Department for a demand of H. 18.27 for the assessment
year 2022-23 disallowing the ‘Repairs and Maintenance' expenditure as revenue expenditure but allowed Depreciation @ 15% on such
expenditure by treating it as ‘capital expenditure'. The Company has filed an appeal before the Commissioner of Income Tax (Appeals) and
waiting for personal hearing.

The Company has filed Stay petition and obtained Stay Order for an amount of H. 0.2 in the month of Feb-26, however remaining amount
has been adjusted by the Authorities with the outstanding refunds due to the Company.

(vi) The Company has received an Order from the Deputy Commissioner of State Tax, Pune for a demand of H. 4.22 for the period July 2017 on
the ground that the transitional input tax credit carried forward into GST by the Company is incorrect and accordingly, demand has been
raised along with interest and penalty. The Company has filed an appeal before the Deputy Commissioner of State Tax (Appeals), Pune.

The Company has discharged the remaining tax liability of H. 1.98 and the applicable interest liability of H. 1.09 in the month of Feb-26 and
requested the Authorities to waive the remaining interest liability and full penalty. The Company is waiting for the final Order.

(vii) The Company has received Orders from the Deputy Commissioner of Commercial Taxes (Enforcement), Kalaburagi for a demand of H.
366.84 for the period July 2017 to March 2022 on the ground that ‘Marketing support' services received from M/s. Sai Life Sciences Inc.,
USA are liable to GST under Reverse Charge mechanism. The Company has filed an appeal before the Joint Commissioner of Commercial
Taxes (Appeals), Gulbarga and all appeals were dismissed in the month of Nov-25. The Company is in process of filing an appeal

before the GSTAT.

(viii) The Company has received an order from the Joint Commissioner, Malkajgiri Division, Telangana for the financial year 2018-19 disallowing
the input tax credit from cancelled tax payers for an amount of H. 4.97 including interest and penalties. The Company has filed an appeal
before the Joint Commissioner of State Tax (Appeals), Telangana and waiting for personal hearing.

The Company has received an order from the Joint Commissioner, Malkajgiri Division, Telangana for the financial year 2019-20 disallowing
the input tax credit from cancelled tax payers for an amount of H. 0.43 including interest and penalties. The Company has filed an appeal
before the Joint Commissioner of State Tax (Appeals), Telangana and waiting for personal hearing.

(ix) The Company has received an order from the Deputy Commissioner, Kalaburagi, Karnataka for the financial year 2019-20 disallowing the
input tax credit on invoices not appearing in Form GSTR-2A for an amount of H. 2.89 including interest and penalties. The Company has
filed an appeal the Joint Commissioner of Commercial Taxes (Appeals), Gulbarga and waiting for personal hearing.

The Company has received an order from the Deputy Commissioner, Kalaburagi, Karnataka for the financial year 2020-21 disallowing the
input tax credit on invoices not appearing in Form GSTR-2A for an amount of H. 87.88 including interest and penalties. The Company has
filed an appeal before the Appellate Authority and the appeals were dismissed in Dec-25. The Company is in process of filing an appeal
before the GSTAT.

The Company has received an order from the Deputy Commissioner of Commercial Taxes (Audit), Bidar, Karnataka for the financial year
2021-22 disallowing the input tax credit on invoices not appearing in Form GSTR-2A for an amount of H. 328.57 including interest and
penalties. The Company has filed an appeal before the Appellate Authority in Mar-26 and waiting for personal hearing.

The Company has received an order from the Additional Commissioner Hyderabad for the financial years 2018-19 to 2021-22 levying the
penalty for an amount of H. 49.34 for incorrect distribution of input tax credit through the Company's ISD registration in the month of Dec-
25. The Company has filed an appeal before the Appellate Authority in the month of Mar-26 and waiting for personal hearing.

The Company has received an order from the Assistant Commissioner Pune for the financial years 2018-19 to 2021-22 disallowing the input
tax credit on invoices for which the tax credits have been incorrectly distributed through the Company's ISD registration for an amount of
H. 14.03 including penalties. The Company has filed a rectification Order for the errors apparent on record in the month of Feb-26 and
waiting for the revised Order.

(x) The Company has received Orders under Maharashtra Value Added Tax (‘MVAT') Act, 2002 and Central Sales Tax (‘CST') Act, 1956 from
the Joint Commissioner of State Tax, Pune for a demand of H. 44.73 for the period April 2009 to March 2014 regarding the eligibility

of refund of Input Tax Credit (‘ITC') under MVAT Act. The tax authorities have raised objection that the subject activity of transfer of
deliverables (technical know-how) by the Company to the Customer is a service and not sale of goods. However, the Company believes that
transfer of deliverables to the Customer is sale of goods and the Company is eligible for refund of unutilized ITC. Accordingly, the Company
has filed an appeal before the Maharashtra Sales Tax Tribunal (MSTT) and waiting for personal hearing.

The Company has created a provision for an amount of H. 69.75 in the book of accounts as at 31 March 2026 including the interest liabilities.

(xi) The Company has received an Order from the Assistant Commissioner of Customs, Mumbai for a demand of H. 0.06 for the period January
2019 to August 2019 regarding short discharge of customs duties owing to wrong classification of goods. The Company has filed a reply
clarifying the error in the Order and further, filed an appeal before the Commissioner of Customs (Appeals), Mumbai. The Company is
waiting for personal hearing.

(xii) The Company has received an Order dated 18 March 2026 from the Income tax authorities relating to assessment year 2020-21 for an
amount of H. 45.36, treating the Company as ‘Assessee in default' due to non-deduction of TDS on remittances made to certain vendor
outside of India. The Company is in process of filing an appeal before the CIT (A).

(xiii) The Company is subject to various legal proceedings and claims, which have arisen in the ordinary course of business including litigation
pending before various tax authorities, including those mentioned in above points. The uncertainties and possible refunds are dependent
on the outcome of different legal processes, which have been invoked by the claimants or the Company, as the case may be and therefore
cannot be accurately predicted . The Company engages reputed professional advisors to protect its interest and has been advised that it
has strong legal positions against such disputes. Management believes that it has a reasonable case in its defence of the proceedings and
accordingly no impact has been considered in the financial statements.

43. Other statutory disclosures

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

ii) The Company does not have any transactions with companies struck off.

iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

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

vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with

the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
(Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) 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 Group 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.

viii) The Company does not have any such transaction which is not recorded in the books of account 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

44. Micro, Small and Medium Enterprises

Disclosure in respect of the amounts payable to micro and small enterprises as at 31 March 2026 & 31 March 2025 has been made in the financial
statements based on information received and available with the Company. The Company has not received any claim for interest from any supplier
under the said Act.

⁽¹⁾ Long-Term borrowings Short-Term borrowings - Cash and cash equivalents -Other bank balances (note 15 (ii)) and Deposits classified under
Other financial assets (note 10))

^(2> Net profit before tax Depreciation Finance cost

⁽³⁾ Finance cost (excluding interest on lease liabilities) Current maturities of long-term loans

⁽⁴⁾ Current assets - current liabilities

⁽⁵⁾ Total Assets - current liabilities

⁽⁶⁾ Cost of materials consumed Changes in inventories of work-in-progress

⁽⁷⁾ Gain on investments carried at fair value through profit or loss (FVTPL) (refer note 27)

⁽⁸⁾ Investment in mutual funds (at fair value through profit or loss (FVTPL)) (refer note 9)

⁽⁹⁾ The Company has made investments in mutual funds during the current year ended 31 March 2026

47. The Board of directors recommended following in its meeting held as on 10 June 2024. :

(i) To split equity share of face value of H. 10 each into 10 equity shares of face value of H. 1 each. Accordingly, the issued, subscribed and paid-up
capital of our Company was subdivided from 17,663,034 equity shares of face value of H. 10 each to 176,630,340 equity shares of face value of
H. 1 each. The impact of split share is retrospectively considered in the computation of EPS as per the requirement of Ind AS - 33

Earnings per share.

(ii) Increase in authorized share capital from H. 214 consisting of 21,400,000 Equity Shares of H. 10/- each to H. 250 consisting of 250,000,000 Equity
Shares of H. 1 each.

The shareholders of the Company approved above recommendation in its Extra Ordinarily General Meeting, dated 11 June 2024.

48. During the previous year ended 31 March 2025, the Company has completed its Initial Public Offer of equity shares of face value of H. 1 each at

a issue price of H. 549 per share (including premium of H. 548 per share) comprising of Offer for Sale of 38,116,934 equity shares by selling share
holders aggregating to H. 20,926.20 and fresh issue of 17,304,189 equity shares aggregating to H. 9,500.00. The equity shares of the Company got
listed on National Stock Exchange of India limited and Bombay Stock Exchange on 18 December 2024.

49. Subsequent to the year end, the Company has been served notice in a Public Interest Litigation filed before the Hon'ble High Court of Karnataka
relating to environmental matters in the Kolhar Industrial Area, Bidar, wherein the Company has been named as one of the respondents. The
matter is currently at a preliminary stage and no adverse orders have been passed as at the date of approval of these financial statements. Based
on its assessment and considering existing regulatory approvals, management believes that the matter is not expected to have a material impact
on the financial position of the Company or its ability to continue as a going concern.

50. Approval of financial statements

The Standalone financial statements were approved by the Board of Directors on 14 May 2026.