(12) Provisions, contingent liabilities and contingent assets

Provisions are recognized when there is a present obligation (legal or constructive) as a result of a past event, 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.

The expenses relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows specific
to the liability. The unwinding of the discount is recognised as finance cost.

A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract and
the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment loss
on the assets associated with that contract.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably
not, require an outflow of resources. When there is a possible obligation of a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision disclosure is made.

A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.
Commitments includes the amount of purchase order (net of advance) issued to parties for completion of assets.

Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance sheet date.

(13) Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the
other comprehensive income in cash flow hedging reserve within equity, limited to the cumulative change in fair value of hedged item on a
present value basis from the inception of hedge. The gain or loss relating to the effective portion is recognized immediately in profit or loss.
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss.

(14) Leases

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.

Company as a lessee

The Company's lease asset classes primarily consist of leases for land. The Company assesses whether a contract 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: (i) the contract involves the use of an identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through the period of the lease and (iii) the Company has the right to direct the use of the
asset.

At the date of commencement of the lease, the Company recognizes a right-of-use asset ("ROU") and a corresponding 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. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a
straight-line basis over the term of the lease.

Certain lease arrangements includes the options to extend or terminate the lease before the end of the lease term. ROU assets and
lease liabilities includes these options when it is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are
subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and
useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e.
the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not
generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for
the Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are
discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the
country of domicile of these leases. Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will exercise an extension or a termination option.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing
cash flows.

(15) Impairment of non-financial assets

Goodwill and intangible assets that have infinite useful life are not subjected to amortization and are tested annually for impairment,
or more frequently if events or changes in circumstances indicate that they might be impaired.

The carrying values of other assets/cash generating units at each balance sheet date are reviewed for impairment if any indication of
impairment exists. If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for
such excess amount.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future
cash flows to their present value based on an appropriate discount factor that reflects current market assessments of the time value of
money and the risk specific to the asset.

When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods
which no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss,
to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets, such reversal is not
recognised.

(16) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity,
on or before the end of the reporting period but not distributed at the end of the reporting period.

(17) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity
of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are considered an integral part of the Company's cash management.

(18) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

- the profit attributable to owners of the Company

- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in
equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

- the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

- the weighted average number of additional equity shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares.

(F) Recent 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.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f. April 1, 2025. The
Company has reviewed the amendment and based on its evaluation has determined that it does not have any significant impact in its financial
statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f. April 1, 2025 - The amendment relates to classification of liabilities
as current or non-current and non-current liabilities with covenants. In the context of classifying a liability as current, it removes the
requirement of existence of a right to defer settlement for at least 12 months after the reporting date and instead requires that the said
right should exist on the reporting date and have substance. The amendment also introduces guidance on classification of liabilities
with covenants. The Company has no impact of these amendments in its classification criteria of current and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments: Disclosures, applicable w.e.f. April 1, 2025 - The amendment
in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance arrangements and explain the nature of
the arrangements, the carrying amount of liabilities and the range of payment due dates. Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may cause concentration of liquidity risk. The Company has reviewed the amendment and based
on its evaluation has determined that it does not have any significant impact in its financial statements.

3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide a temporary
mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied the relief. This relief is immediate
and applies retrospectively. The Company has reviewed the amendment and based on its evaluation has determined that it does not
have any significant impact in its financial statements."

Note 13.1: 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 persons or entities, 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
("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company has not received any funds 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 Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries.

General reserve

General reserve is a free reserve which is created by transferring fund from retained earnings to meet future obligations and purposes.

Capital redemption reserve

Capital redemption reserve was created for buy back of shares. The company may issue fully paid-up bonus shares out of the capital redemption
reserve.

Employee stock options outstanding

The employee stock options outstanding is used to recognise the grant date fair value of options issued to employees under the Company's stock
option plan.

Securities Premium

Securities Premium is used to record the premium received on issue of shares. The reserve is utilised in accordance with the provisions of the
Companies Act, 2013.

Note 18.1 : Term Loan from a Bank amounting to ? 5,000 lakh is repayable in quarterly instalments commencing from 1 January 2026. The loan
carries a current interest rate of 7.85% per annum (Previous year: 7.85% per annum) and is repayable up to April 2028.

During the current year, ?8,900 lakh (Previous year: ? 1,000 lakh) representing instalments falling due within twelve months has been disclosed
under Current Maturity of Long-term Borrowings.

Note 18.2 : Non-convertible debentures (NCD) is repayable on March 25, 2027 . Interest rate of NCD is 8.90%. During the current year interest of
' 5.97 lakh (Previous year '5.97 lakh) has been disclosed under current maturities of long-term borrowings.

The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

Note 39 : Employee benefits

The Company contributes to the following post-employment plans in India.

Defined Contribution Plan:

The Company pays provident fund contributions to publicly administered provident funds as per local regulations and are recognised as expense in
the Statement of Profit and Loss during the period in which the employee renders the related service. There are no further obligations other than
the contributions payable to the appropriate authorities.

The Company recognised ' 186.91 lakh for the year ended March 31, 2026 (Previous Year ' 219.54 lakh ) towards provident fund contribution in the
Statement of Profit and Loss.

Defined Benefit Plan:

The Company's gratuity scheme is defined benefit plan. The Company's liability for the defined benefit scheme is actuarially determined based on
the projected unit credit method. The Company's net obligations in respect of such plans is calculated by estimating the amount of future benefit that
the employees have earned in return for their services and the current and prior periods that benefit is discounted to determine its present value and
the fair value of the plan asset is deducted. Actuarial gains and losses are recognised in Other Comprehensive Income.

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity payments.
The plan provides a lump sum gratuity payment to eligible employees at retirement or termination of their employment. The amounts are based on
the respective employee's last drawn salary and the years of employment with the Company.

Liabilities in respect of the gratuity plan are determined by an actuarial valuation, based upon which the Company makes annual contributions to
the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. Trustees
administer the contributions made by the Company to the gratuity scheme.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme
was carried out as at March 31, 2026. The present value of the defined benefit obligations and the related current service cost and past service cost,
were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan
assets as at balance sheet date:

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk;

• Market risk;

• Currency risk;

i. Risk management framework

The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The board of directors has established the Risk Management Committee, which is responsible for developing and
monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate
risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and
procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and
obligations.

The audit committee oversees how management monitors compliance with the company's risk management policies and procedures,
and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is
assisted in its oversight role by internal audit. Internal audit undertakes both regular and adhoc reviews of risk management controls
and procedures, the results of which are reported to the audit committee.

Note 40.2 : Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
and arises principally from the Company's receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which
the Company grants credit terms in the normal course of business.

The Company has established a credit policy 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 export sales are backed by letters of credit and Trade Credit
Insurance policy from Export Credit Guarantee Corporation of India (ECGC).

The company individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the Company makes specific
provisions against such trade receivables wherever required and monitors the same at periodic intervals.

The Company monitors each loans and advances given and makes any specific provision wherever required.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables and loans and
advances.

The maximum exposure to credit risk for trade and other receivables by type of counterparty was as follows.

Other financial assets

This comprises mainly of balances with banks, deposits with Government authorities and other receivables. Credit risk arising from these financial
assets is limited and there is no collateral held against these because the counterparties are banks and government organizations. The Company
considers that its balances with banks have low credit risk based on the external credit ratings of the counterparties. The Company has created the
loss allowance for other receivables on specific identification basis.

Cash and cash equivalents

The Company held cash and cash equivalents of ' 1003.70 lakh at March 31, 2026 (previous year ' 56.50 lakh) . The cash and cash equivalents are held
with bank and financial institution counterparties with good credit rating.

Note 40.3 : Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled
by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company's reputation.

Exposure to liquidity risk

The company has sufficient credit lines with Banks / Financial Institutions / Other group companies and board approvals are in place to utilise the
saction limits.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and
include estimated interest payments and exclude the impact of netting agreements.

Note 40.4 : Currency Risk

Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company's
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return. The Company uses derivatives to manage market risks. Generally, the Company hedge the
financial instruments to manage volatility in profit or loss.

Currency risk

The company operates internationally and portion of the business is transacted in USD, EURO and CHF currencies and consequently the company
is exposed to foreign exchange risk through its sales in overseas market and purchases from overseas suppliers in various foreign currencies.
Foreign currency exchange rate exposure is partly balanced by purchasing of goods and services in the respective currencies and through derivative
instruments.

The company evaluates exchange rate exposure arising from foreign currency transactions and the company follows established risk management
policies, including the use of derivatives like foreign exchange forward contracts to hedge exposure to foreign currency risk.

Exposure to currency risk ( Exposure in different currencies converted to functional currency i.e INR)

The summary quantitative data about the Company's exposure to currency risk as reported to the management of the Company is as follows. The
following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include
estimated interest payments and exclude the impact of netting agreements.

Note 40.5 : Interest rate risk

Interest rate risk can either be fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values
of fixed interest bearing financial assets or borrowings because of fluctuations in the interest rates, if such assets/borrowings are measured at fair
value through profit or loss. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate
because of fluctuations in the interest rates.

ii. Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and
recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each
jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

iii. Unrecognised deferred tax assets: Deferred tax assets amounting to INR 2,002.38 lakh (Previous Year: INR 2,877. 78 lakh) have not been
recognised in respect of tax losses amounting to INR 7,956.06 lakh (Previous Year: INR 11,426.95 lakh) because in terms of para 34 to 36
of IND AS 12 - Income Taxes it is not probable that future taxable profit will be available against which the company can use the benefits
therefrom. Tax losses on which deferred tax assets is not recognized comprises of Unabsorbed depreciation of INR 4,537.65 lakh (Previous
Year: INR 5,165.54 lakh) which can be carried forward indefinitely and business loss of INR 3,418.40 lakh (Previous Year: INR 6,261.41 lakh)
which expire in FY 2034-35.

Note 43 : Capital Management

The Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development
of the business. Management monitors the return on capital as well as the level of dividends to ordinary shareholders.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position. The primary objective of the Company's Capital Management is to maximise shareholder
value. The Company manages its capital structure and makes adjustments in the light of changes in the economic environment and the requirements
of the financial covenants, if any.

The Company monitors capital using a ratio of 'adjusted net debt' to 'equity'. For this purpose, adjusted net debt is defined as total borrowings,
comprising interest-bearing loans and borrowings less cash and cash equivalents. Equity comprises all components of equity.

Note 44: Operating Segment

In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated financial statements of Astec
LifeSciences Limited and therefore no separate disclosure on segment information is given in these financial statements.

Note 45 : Share based payments

(a) Employee stock option scheme (ESOP, 2012 as amended by the Shareholders by way of a Special Resolution)

The Company had set up the Employees Stock Option Plan 2012 which was amended by the Shareholders by way of a Special Resolution
obtained by way of Postal Ballot, whose results have been declared on September 27, 2021.

The Scheme applies to the Eligible Employees who are in whole time employment of the Company or its Subsidiary Companies. The
entitlement of each employee would be decided by the Nomination and Remuneration Committee of the respective Company based on the
employee's performance, level, grade, etc.

The total number of Stock Option to be awarded under the ESOP Scheme are restricted to 1% of the issued equity share capital at the time of
awarding the Stock Option, can be awarded to any one employee in any one year.

The Stock Options shall vest in the Eligible Employees pursuant to the ESOP Scheme in the proportion of 1/3^rd at the end of each year
from the date on which the Stock Options are awarded for a period of three consecutive years, or as may be determined by the Nomination

Note 46.1 : Contingent liabilities represents estimates made mainly for probable claims arising out of litigation/ disputes pending with authorities
under various statutes (Excise duty, Customs duty, Income tax, etc).The probability and timing of outflow with regard to these matters depend on the
final outcome of litigations/ disputes. Hence, the Company is not able to reasonably ascertain the timing of the outflow.

Note 46.2 : The above amounts includes interest of ' 10,114.77 lakh (previous year ' 9,945.76 lakh)

Note 47

The Hon'ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshani Limited & others v/s EPFO, set out
the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation
of Provident Fund contribution. The company has started complying with this prospectively from the month of March 2019. In respect of the past
period there are significant implementation and interpretative challenges that the management is facing and is awaiting for clarity to emerge in this
regard, pending which, this matter has been disclosed under the Contingent liability section in the financial statements. The impact of the same is
not ascertainable.

Note 52: Additional regulatory information pursuant to the requirement in Division II of Schedule III to the Companies Act, 2013

The remuneration paid to its directors during the current year is in accordance with the provisions of Section 197 of the Act.

Note 53: Labour code Note

On November 21, 2025, the Government of India notified the four Labour Codes - 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 - consolidating 29 existing labour laws. The
Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The Company has considered restructured compensation of its employees with effect from April 1, 2026, and assessed the impact of the changes,
consistent with the Labour Codes, draft rules, FAQs and legal opinion. Considering the materiality and regulatory-driven, non-recurring nature of this
impact, the Company has presented such incremental impact under "Exceptional Items" in the standalone statement of profit and loss for the year
ended March 31, 2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other
aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed.