3.11 Provisions

A provision is recognized when the company has a
present obligation as a result of past event and it is
probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate can be made of
the amount of the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects current market assessments of the
time value of money and the risks specific to the
liability. When discounting is used, the increase
in the provision due to the passage of time is
recognized as a finance cost.

Provisions are not discounted to their present value
and are determined based on the best estimate
required to settle the obligation at the reporting
date. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates.

Warranties

A provision for warranties is recognised when the
underlying products are sold. The provision is based

on technical evaluation, historical warranty data
and a weighting of all possible outcomes by their
associated probabilities. A liability is recognised at
the time the product is sold. The Company does not
provide any extended warranties to its customers.

3.12 Contingent Liability

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the company or a present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognized because it cannot be
measured reliably. The company does not recognize
a contingent liability but discloses its existence in
the financial statements.

3.13 Contingent Asset

A contingent asset is a possible asset that arises
from past events and whose existence will be
confirmed only by occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the company. Contingent
assets are neither recognised nor disclosed in the
financial statements.

3.14 Foreign Currency

a. Initial recognition

Foreign currency transactions are recorded
in the functional currency, by applying to the
foreign currency amount the exchange rate
between the functional currency and the
foreign currency at the date of the transaction.

b. Conversion

Foreign currency monetary items are
retranslated using the exchange rate prevailing
at the reporting date. Non-monetary items,
which are measured in terms of historical
cost denominated in a foreign currency, are
reported using the exchange rate at the date
of the transaction.

c. Exchange difference

All exchange differences are recognized as
income or as expenses in the year in which they
arise.

3.15 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash
flow statement comprise cash at bank (including

demand deposits) and in hand and 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.

3.16 Earnings per shar

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year
are adjusted for the effects of all dilutive potential
equity shares.

3.17 Inventories

Items of inventory are valued at cost or net
realizable value, whichever is lower. Cost for raw
materials, traded goods and stores and spares is
determined on FIFO basis. Cost includes all charges
in bringing the goods to their present location and
condition. Net realizable value is the estimated
selling price in the ordinary course of business less
the estimated cost of completion and the estimated
costs necessary to make the sale.

3.18 Lease

(i) As a lessee

The Company assesses whether a contract, is,
or contains a lease, at inception of a contract.
A contract is, or contains, a lease if the
contract conveys the right to control the use
of an identified asset for a period of time in
exchange for consideration. To assess whether
a contract conveys the right to control the use
of an identified asset, the Company assesses
whether:

- the contract involves the use of an
identified asset;

- the Company has substantially all of the
economic benefits from use of the asset
throughout the period of the lease and

- the Company has the right to direct the
use of the asset.

At the date of commencement of the lease,
the Company recognises a lease liability for
all lease arrangements in which it is a lessee,
except for leases with a term of twelve months
or less (short-term leases) and low value leases
and corresponding Right-of-use Asset. For
these short-term and low value leases, the
Company recognises the lease payments as an
operating expense on a straight-line basis over
the term of the lease.

Leases in which a significant portion of the risks
and rewards of ownership are not transferred
to the Company as lessee are classified as
operating leases. Payments made under
operating leases (net of any incentives received
from the lessor) are charged to the Statement
of Profit and Loss on a straight-line basis over
the period of the lease unless the payments
are structured to increase in line with expected
general inflation to compensate for the lessor's
expected inflationary cost increases.

3.19 Segment Reporting

An operating segment is component of the company
that engages in the business activity from which
the company earns revenues and incurs expenses,
for which discrete financial information is available
and whose operating results are regularly reviewed
by the chief operating decision maker, in deciding
about resources to be allocated to the segment
and assess its performance. The company's chief
operating decision maker is the managing Director.
Assets and liabilities that are directly attributable
or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities
are disclosed as un-allocable.

Revenue and expenses directly attributable to
segments are reported under each reportable
segment. All other expenses which are not
attributable or allocable to segments have been
disclosed as un-allocable expenses.

The company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements
of the company as a whole.

3.20 Cash Flow Statement

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

3.21 Events after reporting date

Where events occurring after the Balance Sheet
date provide evidence of conditions that existed at
the end of the reporting period, the impact of such
events is adjusted within the financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.

3.22 Investment in Subsidiaries

The Company has elected to recognise its
investments in subsidiary at cost in accordance with
the option available in Ind AS 27, Separate Financial
Statements.

3.23 Business Combinations

The Company accounts for its business
combinations under acquisition method of
accounting. Acquisition related costs are recognised
in the consolidated statement of profit and loss as
incurred. The acquiree's identifiable assets, liabilities
and contingent liabilities that meet the condition
for recognition are recognised at their fair values at
the acquisition date.

Purchase consideration paid in excess of the
fair value of net assets acquired is recognised as
Goodwill. Where the fair value of identifiable assets
and liabilities exceed the cost of acquisition, after
reassessing the fair values of the net assets and
contingent liabilities, the excess is recognised as
capital reserve.

If the business combination is achieved in stages,
any previously held equity interest is re-measured
at its acquisition date fair value and any resulting
gain or loss is recognised in profit or loss or OCI, as
appropriate.

Business combinations arising from transfers of
interests in entities that are under common control
are accounted at historical cost. The difference
between any consideration given and the aggregate
historical carrying amounts of assets and liabilities
of the acquired entity is recorded in in Capital
reserve in shareholders' equity.

4. USE OF ESTIMATES

The preparation of the financial statements in
conformity with Ind AS requires management to
make estimates, judgments and assumptions.

These estimates, judgments and assumptions
affect the application of accounting policies and
the reported amounts of assets and liabilities, the
disclosures of contingent assets and liabilities at
the date of the financial statements and reported

amounts of revenues and expenses during the
period.

Accounting estimates could change from period
to period. Actual results could differ from those
estimates. Appropriate changes in estimates are
made as management becomes aware of changes in
circumstances surrounding the estimates. Changes
in estimates are reflected in the financial statements
in the period in which changes are made and, if
material, their effects are disclosed in the notes to
the financial statements.

Application of accounting policies that require
critical accounting estimates involving complex and
subjective judgments and the use of assumptions in
these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Measurement and timing for Revenue
Recognition

- Income tax and deferred tax

- Measurement of defined employee benefit
obligations

4.1 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. The Ministry
of Corporate Affairs vide notification dated 9
September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards)
Second Amendment Rules, 2024 and Companies
(Indian Accounting Standards) Third Amendment
Rules, 2024, respectively, which amended/notified
certain accounting standards (see below), and are
effective for annual reporting periods beginning on
or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback -
Amendments to Ind AS 116

These amendments did not have any impact
on the amounts recognised in current or prior
period. Further, On May 9, 2025, MCA notifies the
amendments to Ind AS 21 - Effects of Changes in
Foreign Exchange Rates. These amendments aim
to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates
when currencies are not readily exchangeable.
The amendments are effective for annual periods
beginning on or after April 1, 2025. The Company
is currently assessing the probable impact of these
amendments on its financial statements.

The Company's capital management is intended to create value for shareholders by facilitating the achievement
of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long¬
term and short term strategic investment and expansion plans. The funding needs are met through equity, cash
generated from operations, long-term and short-term borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the
overall debt portfolio of the Company.

Net debt includes borrowings less cash and cash equivalents, other bank balances.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

43.3 The Company is responsible for the governance of the plan.

43.4 Risk to the Plan

Gratuity is a defined benefit plan and entity is exposed to the Following Risks:

A Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result
into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than
the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death
benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of
the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption
than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the
benefits are vested as at the resignation date.

B Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer
may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is
independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded
status if there are significant changes in the discount rate during the inter- valuation period.

C Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of
benefits. If some of such employees resign/retire from the Company there can be strain on the cashflows.

D Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects
the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the
plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and
hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the
legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the Group
to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognized immediately in the year when any such amendment is
effective.

F Asset Liability Matching Risk:

Gratuity Benefits liabilities of the Company are Unfunded. There are no minimum funding requirements for
a Gratuity Benefits plan and there is no compulsion on the part of the Company to fully or partially pre-fund
the liabilities under the Plan. Since the liabilities are unfunded, there is no Asset-Liability Matching strategy
device for the plan.

The company's activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company's
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its
financial performance. The Board of Directors has overall responsibility for the establishment and oversight of
the Company's risk management framework. The Board of Directors has established a risk management policy to
identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor
risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market
conditions and the Company's activities. The Board of Directors oversee compliance with the Company's risk
management policies and procedures, and reviews the risk management framework.

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises interest rate risk and currency risk.
i Interest Rate Risk

I nterest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Interest risk arises to the Company mainly from
borrowings with variable rates. The company measures risk through sensitivity analysis. The banks are
now finance at variable rate only, which is the inherent business risk.

45.1 Fair Value Measurement of Financial Asset and Financial Liabilities
Fair Value Hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized
within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to
measure fair value that are either observable or unobservable and consists of the following three levels:

Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - inputs are other than quoted prices included within level 1 that are observable for the asset or liability
either directly (i.e. as prices) or indirectly (i.e. derived prices)

Level 3 - inputs are not based on observable market data (unobservable inputs). Fair values are determined
in whole or in part using a valuation model based on assumption that are neither supported by prices from
observable current market transactions in the same instrument nor are they based on available market data.

The company does not have any Financial assets measured at fair value at the year end.

Post employment benefits comprises of Gratuity and leave encashment provisions derived based on expenses
recognised in statement of profit and loss that is attributable to Key management personnel (KMP). Such benefits
are payable at the time of cessation of the employment and hence is not added to the payable balances of the
KMPs.

47 SEGMENT INFORMATION

47.1 Primary Segment

The Operating Segments have been reported in a manner consistent with the internal reporting provided to the
Board of directors, who are the Chief Operating Decision Makers. They are responsible for allocating resources and
assessing the performance of operating segments. Accordingly, the reportable segment is only one segment i.e.
Manufacturing and Development of Pharmaceuticals and allied products and services

47.2 Information about major customers

No single external customer represents 10% or more of the Company's total revenue for the years ended
March 31, 2025 and March 31, 2024 respectively

47.3 Secondary Segment - Geographical Segment

The analysis of geographical segment is based on geographical location of the customers. The geographical
segments considered for disclosure are as follows:

Sales within India : Sales to customer located within India.

Sales outside India : Sales to customer located outside India.

48 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current
period's classifications / disclosures.

49 The Management has assessed internal and external information upto the date of approval of these fianncial
statements while reviewing the recoverability of the assets, adequacy of financial resources, performance of
contractual obligations, ability to service the debt & liabilities etc. based on such assessment, the management
expects to fully recover the carrying amounts of the assets and confortably discharge its debts & obligations.
Hence, the management does not envisage any material impact on these Financial Statements.

50 The Company has applied the term loans for the purpose for which it was raised during the year.

51 Balances of receivables, trade payables as well as loans and advance have been taken as per the books of accounts
submitted by the company and are subject to confirmation from the respective parties.

52 The Regional Director ('RD') vide its order dated June 20, 2024 had sanctioned the Scheme of Amalgamation
between Ratnagene Lifescience Private Limited ('Transferor Company') (i.e. Subsidiary Company), Senores
Pharmaceuticals Limited (Formerly 'Senores Pharmaceuticals Private Limited') ('Transferee Company') ('Holding
Company' or 'the company') and their respective shareholders and creditors ('the Scheme') under section 233
of the Companies Act, 2013. The Scheme provides for the Amalgamation of the Transferor Company into the
Transferee Company and dissolution of the Transferor Company without winding up with the Appointed date
being January 01, 2024. The effective of the Scheme is June 27, 2024.

52.1 As stated in the Scheme, the company has applied 'Pooling of interest' method prescribed in the Appendix C of the
Indian Accounting Standard 103 'Business Combinations' as the entities involved in the transaction are considered
to be under a common control. Accordingly,

a) All the assets, liabilities and reserves of the Transferor Company transferred to and vested in the Transferee
Company pursuant to the Scheme are recorded at their respective book value and in the same form as
appearing in the consolidated financial statements of Transferee Company, being the holding company, in
respect of Transferor Company.

b) The identity of the reserves of the Transferor Company are preserved and appear in the books of accounts
of Transferee Company in the same form and manner, as appearing in the consolidated financial statements
of the Transferee Company, being the Holding Company, in respect of the Transferor Company, prior to this
Scheme becoming effective.

c) The inter-company balances between the transferor and Transferee Company inter-se have been cancelled.

d) The investments in the equity shares of the Transferor Company and the difference between (a) the carrying
value of assets, liabilities and reserves pertaining to the Transferor Company recorded and (b) the carrying
value of investment in the equity shares of the Transferor Company in the books of accounts of the Transferee
Company, are credited to capital reserve in the books of accounts of Transferee Company and presented
separately from other capital reserves with disclosure of its nature and purpose in the notes. In case, the
difference is deficit, then the same is adjusted against existing capital reserve and disclosed in the "Other
Equity"."

53 UNDISCLOSED TRANSACTIONS

As stated & confirmed by the Board of Directors, The Company does not have 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.

54 BENAMI TRANSACTIONS

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any
proceeding has been initiated or pending against the Group for holding any Benami property.

55 LOAN OR INVESTMENT TO ULTIMATE BENEFICIARIES

As stated & Confirmed by the Board of Directors, 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

56 LOAN OR INVESTMENT FROM ULTIMATE BENEFICIARIES

As stated & Confirmed by the Board of Directors, 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

57 WORKING CAPITAL

As stated and confirmed by the Board of Directors, the Company has been sanctioned working capital facilities
during the year under review and inventory records submitted with the banks are in confirmity with books of
accounts of the company.

58 WILLFUL DEFAULTER

As stated & confirmed by the Board of Directors, the Company has not been declared willful defaulter by the bank
during the year.

59 During the year ended March 31, 2025, the Company has completed its Initial Public Offer ("IPO") of 14,887,723
equity shares of face value of ' 10/- each comprising of (i) fresh issue of 12,787,723 equity shares at an issue
price of ' 391 per equity share which includes 75,000 equity shares at an issue price of ' 391 per equity share for
employee quota; (ii) an offer for sale of 2,100,000 equity shares at an issue price of ' 391 per equity share. The
equity shares of the Company were listed on BSE Limited ("BSE") and National Stock Exchange of India Limited
("NSE") on December 30, 2024.

64 NUMBER OF LAYER OF COMPANIES

As stated & confirmed by the Board of Directors, the Company has complied with the number of layers prescribed
under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

65 CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section 135 of the Companies Act, 2013 and rules made thereunder, the net worth,
turnover and net profit of the Company during the immediately preceding financial was less than the prescribed
threshold of ' 500 Crore, ' 1000 Crore and ' 5 Crore respectively, therefore the Company is not required to spend
on CSR activities during the year 2024-25.

Material Accounting Policies - Note 1 to 4 and
5 to 65 Notes forming part of the Standalone Financial Statements

As per our report of even date attached For and on behalf of Board of Directors of

For, Pankaj R Shah & Associates Senores Pharmaceuticals Limited

Chartered Accountants (Formerly known as "Senores Pharmaceuticals Private Limited")

Firm Regn. No. 107361W CIN: L24290GJ2017PLC100263

CA Nilesh Shah Swapnil Shah Deval Shah

Partner Managing Director Whole Time Director & CFO

Mem. No. - 107414 DIN: 05259821 DIN: 00332722

Vinay Kumar Mishra

Company Secretary
Mem. No. - F11464

Place: Ahmedabad Place: Ahmedabad

Date: May 15, 2025 Date: May 15, 2025