(k) Provisions, Contingent liabilities and
Contingent assets

Provisions

Provisions are recognised when the Company has 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. When the
Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense 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 discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as
a finance cost.

Contingent liabilities

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

Contingent assets

Contingent assets are not recognised in standalone
financial statements. However, contingent assets are
assessed continually and if it is virtually certain that an
inflow of economic benefits will arise, the asset and
related income are recognised in the period in which
the change occurs.

(l) Employee benefits

Short-term employee benefits

All employee benefits payable wholly within twelve
months of rendering the service are classified as short¬
term employee benefits and they are recognised in the
period the employee renders the related service.

Post-Employment Benefits

Defined Contribution Plans

Retirement benefit in the form of provident fund is a
defined contribution scheme. The Company has no
obligation other than the contribution payable to the
provident fund. The Company recognises contribution
payable to the provident fund scheme as an expense,
when an employee renders the related service. If
the contribution payable to the scheme for service
received before the Balance Sheet date exceeds the
contribution already paid, the deficit payable to the
scheme is recognised as a liability after deducting
the contribution already paid. If the contribution
already paid exceeds the contribution due for services
received before the Balance Sheet date, then excess
is recognised as an asset to the extent that the pre¬
payment will lead to, for example, a reduction in future
payment or a cash refund.

Defined Benefit Plans

The Company operates a defined benefit gratuity plan
in India, which requires contributions to be made to
a separately administered fund. The cost of providing
benefits under the defined benefit plan is determined
based on the projected unit credit method.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined
benefit liability and the return on plan assets (excluding
amounts included in net interest on the net defined
benefit liability), are recognised immediately in the
Balance Sheet with a corresponding debit or credit
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss
in subsequent periods.

Past service costs are recognised in profit or loss on
the earlier of:

• The date of the plan amendment or curtailment, and

• The date that the Company recognises related
restructuring costs

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset. The
Company recognises the following changes in the

net defined benefit obligation as an expense in the
Statement of Profit and Loss:

• Service costs comprising current service costs, past-
service costs, gains and losses on curtailments and
non-routine settlements; and

• Net interest expense or income

Other long-term employee benefits

Compensated absences

The Company treats accumulated leave as a long-term
employee benefit for measurement purposes. Such
long-term compensated absences are provided for
based on an actuarial valuation using the projected
unit credit method at the period-end. Actuarial gains/
losses are immediately taken to the Statement of Profit
and Loss and are not deferred.

(m) Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair
value through profit or loss.

The classification of financial assets at initial recognition
depends on the financial asset's contractual cash flow
characteristics and the Company business model
for managing them. With the exception of trade
receivables that do not contain a significant financing
component or for which the Company has applied the
practical expedient, the Company initially measures
a financial asset at its fair value plus, in the case of
a financial asset not at fair value through profit or
loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which
the Company has applied the practical expedient are
measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies in section
(e) Revenue recognition.

In order for a financial asset to be classified and
measured at amortised cost or fair value through OCI, it
needs to give rise to cash flows that are 'solely payments
of principal and interest (SPPI)' on the principal amount
outstanding. This assessment is referred to as the SPPI
test and is performed at an instrument level.

The Company business model for managing financial
assets refers to how it manages its financial assets in
order to generate cash flows. The business model

determines whether cash flows will result from
collecting contractual cash flows, selling the financial
assets, or both.

Subsequent measurement

A 'debt instrument' is measured at the amortised cost
if both the following conditions are met:

a) The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit
or loss. This category generally applies to trade and
other receivables.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e. removed from the
Company's Balance Sheet) when:

a) the rights to receive cash flows from the asset
have expired, or

b) the Company has transferred its rights to receive
cash flows from the asset, and

i. the Company has transferred substantially all
the risks and rewards of the asset, or

ii. t he Company has neither transferred nor
retained substantially all the risks and rewards
of the asset but has transferred control of the
asset.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss
are carried in the Balance Sheet at fair value with net
changes in fair value recognised in the Statement of
Profit and Loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement

and recognition of impairment loss on the following
financial assets and credit risk exposure:

• Financial assets that are debt instruments, and are
measured at amortised cost

• Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115

The Company recognises impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.

ECL impairment loss allowance (or reversal) recognised
during the period is recognised as income/ expense in
the Statement of Profit and Loss.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value
and, in the case of borrowings and payables, net of
directly attributable transaction costs.

The Company's financial liabilities include trade
and other payables and borrowings including bank
overdrafts.

Subsequent measurement

After initial recognition, Financial liabilities that are not
held-for-trading and are not designated as at FVTPL are
measured at amortised cost in subsequent accounting
periods using the EIR method. Gains and losses are
recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the Statement of Profit
and Loss.

Derecognition

A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.

Reclassification of financial instruments

The Company determines classification of financial
assets and liabilities on initial recognition. After initial
recognition, no reclassification is made for financial
assets which are equity instruments and financial
liabilities. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and
the net amount is reported in the Balance Sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle the
liabilities simultaneously.

Investments in subsidiaries

Investments in subsidiaries are carried at cost less
accumulated impairment losses, if any. Where an
indication of impairment exists, the carrying amount
of the investment is assessed and written down
immediately to its recoverable amount. On disposal of
investment in subsidiaries, the difference between the
net disposal proceeds and the carrying amounts are
recognised in the Statement of Profit and Loss.

(n) Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise
cash at banks and on hand and term deposits, which
are readily convertible into known amounts of cash and
are subject to an insignificant risk of changes in value.

(o) Research and Development

Revenue expenditure on research and development is
charged to Statement of Profit and Loss in the period
in which it is incurred. Property, plant and equipment
purchased for research and development is added
to property, plant and equipment and depreciated in
accordance with the policies of the Company.

(p) Earnings Per Share

Basic earnings per share are 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 amounts are calculated by dividing the
profit attributable to equity holders of the Company
by the weighted average number of Equity shares
outstanding during the period plus the weighted
average number of Equity shares that would be issued
on conversion of all the dilutive potential Equity shares
into Equity shares.

(q) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker. The chief executive
officer is responsible for allocating resources and
assessing the performance of the operating segments
and accordingly is identified as chief operating decision
maker.

14 Share capital (Contd.)

(b) Terms / rights attached to equity shares

The Company has only one class of equity shares having par value of ' 1 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board
of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Company has
proposed an amount of ' 3,295.13 towards dividend (March 31, 2025'2,965.62).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.

(c) Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates

Out of equity shares issued by the Company, shares held by its holding company, ultimate holding company and their
subsidiaries/ associates are as below:

(e) Information regarding shares in the last five years

The Company has not issued any shares without payment being received in cash.

The Company has not issued any bonus shares.

The Company has not undertaken any buy-back of shares.

(f) Shares reserved for issue under options

During the year ended March 31, 2020, the Company had instituted “the Gland Pharma Employee Stock Option Scheme
2019" ('ESOP Scheme 2019') pursuant to approval of “the Gland Pharma Employee Stock Option Plan 2019" ('Plan'). (refer
note 36)

During the year ended March 31, 2026, the Company instituted “the Gland Pharma Employee Stock Option Scheme 2025"
('ESOP Scheme 2025') pursuant to approval of “the Gland Pharma Employee Stock Option Plan 2025" ('Plan'). (refer note 36)

15 Other equity (Contd.)

Nature and purpose of reserves
Securities premium

Securities premium is used to record the premium on issue of shares and can be utilised in accordance with the provisions
of the Companies Act, 2013.

Capital redemption reserve

Capital redemption reserve represents the amount of profits transferred from general reserve for the purpose of redemption
of preference shares or for the buy back of shares.

General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid up share capital of the Company for that year, then the total
dividend distribution is less than total distributable reserve for that year. Consequent to introduction of the Companies Act
2013, the requirement to mandatorily transfer a specified percentage of net profit to general reserve has been withdrawn.
However the amount previously transferred to the general reserve can be utilised only in accordance with the specific
requirements of the Companies Act, 2013.

Share options outstanding reserve

The share options outstanding reserve is used to record the fair value of equity-settled, share-based payment transactions
with employees. The amounts recorded in share options outstanding reserve are transferred to securities premium, upon
exercise of stock options, and transferred to general reserve on account of stock options not exercised by employees.

Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss/(gain) on defined
benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Share application money

Money received as advance towards allotment of share capital is recorded as share application money pending allotment.

35 Employee benefits

I Defined benefit plan

The Company has a defined benefit gratuity plan and is governed by the Code on Social Security, 2020. Every employee
who has completed five years or more of service is entitled to a gratuity on departure at 15 days salary for each completed
year of service. The scheme is funded through a policy with Life Insurance Corporation (LIC). Provision for gratuity is based
on actuarial valuation done by an independent actuary as at the year end. Each year, the Company reviews the level of
funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively stable at
a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

These defined benefit plans expose the Company to actuarial risk which are set out below:

Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate determined by
reference to government bond yields; if the return on plan asset is below this rate, it will create a plan deficit. Currently the
plan has a relatively balanced investment in Government securities and debt instruments.

Interest rate risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset
by an increase in the value of the plan's debt investments.

35 Employee benefits (Contd.)

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan's liability.

Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

The following tables summarise net benefit expenses recognised in the Statement of Profit and Loss, the status of funding
and the amount recognised in the Balance sheet for the gratuity plan:

III Other long term employee benefits
Compensated absences

The Company provides for accumulation of compensated absences by certain categories of its employees. These
employees can carry forward a portion of the unutilised compensated absences and utilise them in future periods or receive
cash in lieu thereof as per the Company's policy. The Company records a liability for compensated absences in the period
in which the employee renders the services that increases this entitlement. The total liability recorded towards this benefit
is ' 277.63 (March 31, 2025: ' 205.95) which includes past service cost of ' 71.66 (March 31, 2025: ' Nil) (refer note 49).

36 Share-based payments

ESOP 2025 Scheme

The Company instituted the Gland Pharma Employee Stock Option Scheme 2025 ('ESOP Scheme 2025') pursuant to
approval of the Gland Pharma Employee Stock Option Plan 2025 ('Plan'). ESOP Scheme 2025 has been approved by special
resolution on March 30, 2025 by the shareholders at the General meeting of the Company. The scheme is to grant options
to eligible employees. The Compensation Committee of the Board, based on satisfaction of prescribed criteria like number
of years of service of the employee, industry experience of the employee, grade or level of the employee etc.; identifies
the employees eligible for the scheme. The maximum number of shares that may be issued pursuant to exercise of options
granted to the participants under ESOP plan and the relevant notified scheme(s) shall not exceed 2,982,124 shares. Out of
2,982,124 shares, the committee granted 860,658 shares on grant date to eligible employees.

The method of settlement under scheme is by issue of equity shares of the Company and there are no cash settlement
alternatives for the employees. Each option comprises of one underlying equity share of ' 1/- each. The said options shall
vest as 34%, 33% and 33% over the variable period ranging between one to three years, subject to satisfaction of Employee
performance conditions specified in the Grant Letter.

36 Share-based payments (Contd.)

ESOP 2019 Scheme

The Company instituted the Gland Pharma Employee Stock Option Scheme 2019 ('ESOP Scheme 2019') pursuant to
approval of the Gland Pharma Employee Stock Option Plan 2019 ('Plan'). ESOP Scheme 2019 has been approved by special
resolution on May 24, 2019 by the shareholders at the General meeting of the Company. The scheme is to grant options to
eligible employees. The Compensation Committee of the Board, based on satisfaction of prescribed criteria like number of
years of service of the employee, industry experience of the employee, grade or level of the employee etc.; identifies the
employees eligible for the scheme. The maximum number of shares that may be issued pursuant to exercise of options
granted to the participants under ESOP plan and the relevant notified scheme(s) shall not exceed 1,704,440 shares (after
subdivision of equity shares). Out of 1,704,440 shares, the committee granted 1,549,500 shares on June 27, 2019 (grant
date) to eligible employees.

The method of settlement under scheme is by issue of equity shares of the Company and there are no cash settlement
alternatives for the employees. Each option comprises of one underlying equity share of ' 1/- each (after subdivision of
equity shares). The said options shall vest as 40%, 30% and 30% over the variable period subject to satisfaction of Employee
performance conditions specified in the Grant Letter.

39 Key accounting estimates and judgements

The preparation of the Company's financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below:

(i) Defined benefit obligation

The cost of defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies
of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates for the respective countries. Further details about gratuity obligations are given in note 35.

(ii) Depreciation on property, plant and equipment

Depreciation on property, plant and equipment is calculated on a straight-line basis using the rates derived from the useful
lives and residual values of all its property, plant and equipment as estimated by the management. The management
believes that current depreciation rates fairly reflect their estimates of the useful lives and residual values of property, plant
and equipment. The useful lives are based on historical experience with similar assets as well as anticipation of future events,
the usage of the asset, expected physical wear and tear, the operating conditions of the asset, anticipated technological
changes or a change in market demand of the product or service output of the asset, manufacturers warranties and
maintenance support, etc.

(iii) Estimation of net realisable value of inventories

Inventories are stated at the lower of cost and net realisable value. In estimating the net realisable value of inventories, the
Company makes an estimate of future selling prices and costs necessary to make the sale.

(iv) Estimate of Profit share

The Company determines the profit share basis the customer's confirmation of units sold and net sales or net profit
computations for the products covered under the arrangement, subject to any reduction/adjustment as required by the
terms of the arrangement. The Company applies judgement in evaluating whether the profit share component recognised
is only to the extent that it is highly probable that a significant reversal will not occur.

(v) Impairment of investments in Subsidiaries

Investments are tested for impairment whenever there is an indication that the recoverable amount of a cash generating
unit is less than its carrying amount based on a number of factors including operating results, business plans, future cash
flows and economic conditions. The recoverable amount of cash generating units is determined based on higher of value-
in-use and fair value less cost to sell. The Investments impairment test is performed at the level of the cash-generating unit
or Groups of cash-generating units which are benefitting from the synergies of the acquisition. Market related information
and estimates are used to determine the recoverable amount. Key assumptions on which management has based its
determination of recoverable amount include estimated long term growth rates, weighted average cost of capital and
estimated operating margins. Cash flow projections take into account past experience and represent management's best
estimate about future developments.

The management assessed that cash and cash equivalents, trade receivables, loans, borrowings, trade payables, leases and
other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged
in a current transaction between willing parties, other than in a forced or liquidation sale.

41 Financial risk management objectives and policies

Financial Risk Management Framework

The Company is exposed primarily to Credit Risk, Liquidity Risk and Market risk (fluctuations in foreign currency exchange
rates and interest rate), which may adversely impact the fair value of its financial instruments. The Company assesses the
unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance
of the Company.

A Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analysing creditworthiness of customers on a
continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments
that are subject to concentrations of credit risk principally consist of trade receivables, cash and cash equivalents, bank
deposits and other financial assets. None of the financial instruments of the Company result in material concentration of
credit risk, except for trade receivables.

Trade receivables:

The customer credit risk is managed by the Company's established policy, procedures and control relating to customer
credit risk management. Ind AS requires an entity to recognise in Statement of Profit and Loss, the amount of expected
credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required
to be recognised in accordance with Ind AS 109. The Company assesses at each date of balance sheet whether a financial
asset or a group of financial assets is impaired. Expected credit losses are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition. The Company has used a practical expedient by computing the expected
credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical
credit loss experience and adjusted for forward-looking information.

41 Financial risk management objectives and policies (Contd.)

The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty
and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation or has entered into
bankruptcy proceedings. Financial assets written off could still be subject to enforcement activities under the Company's
recovery procedures, taking into account legal advice where appropriate. Any subsequent recoveries made are recognised
in Statement of Profit and Loss.

Exposure to credit risk:

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk
was ' 15,206.93 and ' 11,428.99 as of March 31, 2026, and March 31, 2025, respectively, being the total of the carrying
amount of balances with trade receivables. The Company has 1 customer (March 31, 2025: 2 customer) comprising 20.15%
(March 31, 2025: 28.50%) of the trade receivables.

B Liquidity Risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company
manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously
monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

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

41 Financial risk management objectives and policies (Contd.)

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit and Loss and
other comprehensive income and equity, where any transaction references more than one currency or where assets /
liabilities are denominated in a currency other than the functional currency of the respective entities.

C 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. Such changes in the values of financial instruments may result from changes in the foreign currency
exchange rates, interest rates and other market changes.

C1. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the
Company's operating activities (when revenue or expense is denominated in a foreign currency).

42 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company when managing capital is to safeguard
its ability to continue as a going concern and to maintain an optimal capital structure so as to maximise the shareholder value.
The Company determines the capital requirement based on annual operating plans, long-term and other strategic
investment plans. The Company manages its capital structure in consideration to the changes in economic conditions
and the requirements of the financial covenants. The funding requirements are met through equity and operating cash
flows generated. The Company is not subject to any externally imposed capital requirements as it does not have any
interest-bearing loans in the current period.

No changes were made in the objectives, policies or processes for managing capital during the year ended March 31,
2026 and March 31, 2025.

44 Leases

Company as a Lessee

The Company has lease contracts for factory land and office premises. Lease contract for factory land has a lease term of
15 years. The leases for office premises have a term of 12 months or less and hence the Company has applied the short
term exemption towards it.

For movement of ROU assets, refer note 4

For movement of lease liabilities, refer note 20

For Maturity analysis of lease liabilities refer note 41B

The Company has total cash outflow for leases of ' 2.85 and ' 4.19 for the year ended March 31, 2026 and March 31,
2025 respectively.

Company as a Lessor

The Company has given certain land and building on an operating lease (refer note 3) having a term of 10 years. The lease
also contains escalation and renewal clauses. Upon renewal, the lease terms are subject to renegotiation. Rental income
recognised by the Company during the year amounted to ' 78.18 million (March 31, 2025: ' Nil).

45 Segment reporting

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

48 Other Statutory Information

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

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

(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 details of funds invested in intermediaries and further invested or loaned by intermediaries:

The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999)
and the Companies Act for the above transactions and the transactions are not violative of the Prevention of Money¬
Laundering Act, 2002 (15 of 2003).

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

(vii) The Company 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.

49 Exceptional item

The Government of India has consolidated 29 existing labour legislations into a unified framework comprising four Labour
Codes, viz. 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 (collectively referred to as the “New Labour Codes").
These New Labour Codes became effective from 21 November 2025.

Subsequent to the year-end, the Central Government has notified the Code on Wages (Central) Rules, 2026, the Industrial
Relations (Central) Rules, 2026, the Code on Social Security (Central) Rules, 2026, and the Occupational Safety, Health
and Working Conditions (Central) Rules, 2026. The corresponding State Rules and certain other operational clarifications
under the New Labour Codes are yet to be notified

The Company has assessed the implications of the New Labour Codes and has made an additional provision of ' 171.80
million for gratuity and ' 71.66 million leave liability aggregating to ' 243.46 million towards employee benefits during the
current year. Considering the regulatory driven and non - recurring nature of the impact, the Company has presented the
incremental impact as an “Exceptional item". The Company will continue to monitor the notification of the remaining State
Rules and clarifications, and would provide appropriate accounting effect based on the developments, if any.

50 Events after the reporting period

The Board of directors have proposed dividend after the balance sheet date which is subject to approval by the shareholders
at the annual general meeting. Refer note 16 for details.