(i) I t is not practicable for the Company to estimate the timing of cash outflows, if any, in respect of the above pending litigations of the respective proceedings.

(ii) The Company does not expect any reimbursements in respect of the above contingent liabilities.

(iii) The Company believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and results of operations. These demands are with respect to income tax and service tax matters for which appeals have been filed.

(iv) The Company has ongoing disputes with various tax authorities (income tax,and excise ) in India. The Company have disclosed contingent liability as above, respectively, in respect of various tax demands, which are being contested by the Company based on the management evaluation and advice of tax consultants.

(v) The amounts assessed as contingent liability do not include interest and penalty that could be claimed by counter parties.

36 EMPLOYEE BENEFITS PLANS:

(a) Defined contribution plans:

The Company makes contributions towards provident fund, a defined contribution retirement benefit plan for qualifying employees. The provident fund is operated by the Regional Provident Fund Commissioner. The Company recognized ' 662.08 Lakhs (Previous Year ' 549.45 Lakhs) for provident fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the company are at rates specified in the rules of the scheme.

(b) Defined benefit plans:

The Company makes annual contributions to the Employee's Group Gratuity cash accumulation scheme of the LIC, a funded defined benefit plan for qualifying employees. The Scheme provides for payment to vested employees at retirement/death while in employment or on termination of employment as per the provisions of the Payment of Gratuity Act, 1972. Vesting occurs on completion of 5 years of service. The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method as per actuarial valuation carried out at the balance sheet date.

Characteristics of Defined Benefit Plans and risk associated with them:

Valuation of defined benefit plan are performed on certain basic set of pre-determined assumptions and other regulatory framework, which may vary over time. Thus, Company is exposed to various risks in providing the above benefit plans which are as follows:

(i) Interest rate risk:

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (i.e. value of defined benefit obligation).

(ii) Salary escalation risk:

The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan particulars in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

(iii) Demographic risk:

The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.

(iv) Investment risk:

The Company has funded with LIC fund, there is no significant investment risk. Further the present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligations has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

(ii) Fair value hierarchy :

The fair values of the financial assets and liabilities are determined based on the price that would be received to sell an asset or paid to transfer a liability at the reporting date considering the fair value hierarchy as under:

Level 1: I t includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

Fair value hierarchy

The following tables categorise the financial assets and liabilities held at fair value by the valuation methodology applied in determining their fair value.

38 FINANCIAL INSTRUMENTS: FAIR VALUE AND RISK MANAGEMENT

Determination of fair values:

Basis of assumptions used to estimated the fair value of financial assets and liabilities that are measured at fair value on recurring basis :

Investment in Mutual Funds: The fair values represent net asset value as stated by the issuers of these mutual fund units in the published statements. Net asset values represent the price at which the issuer will issue further units in the mutual fund and the price at which issuers will redeem such units from the investors.

Derivative instruments: For forward contracts, future cash flows are estimated based on forward exchange rates and forward interest rates (from observable forward exchange rates / yield curves at the end of the reporting period) and contract forward exchange rates and forward interest rates, discounted at a rate that reflects the credit risk of various counterparties.

Derivative instruments are financial contracts that derive their value from an underlying asset. Their main purpose is to mitigate financial risk and protect against price volatility. Given the uncertainties associated with export revenue from the sale of goods, company has engaged into derivative instruments, to hedge their risk against price fluctuations and safeguard their financial stability.

(iii) Financial Risk Management

The Company's activities are exposed to variety of financial risks. These risks include market risk (including foreign currency risk, interest rate risks and price risk), credit risks and liquidity risk. The Company's overall risk management program seeks to minimize potential adverse effects on the financial performance of the Company through established policies and processes which are laid down to ascertain the extent of risks, setting appropriate limits, controls, continuous monitoring and its compliance.

A Market Risk :

Market risk refers to the possibility that changes in the market rates may have impact on the Company's profits or the value of its holding of financial instruments. The Company is exposed to market risks on account of foreign currency rates, interest rates and underlying equity prices.

A1 Foreign currency risk :

The Company's foreign currency risk arises from its foreign currency transactions and foreign currency borrowings. The fluctuation in foreign currency exchange rates may have potential impact on the income statement 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 company.

The overall objective of the foreign currency risk management is to minimize the short term currency impact on its revenue and cash-flow in order to improve the predictability of the financial performance.

The major foreign currency exposures for the Company are denominated in USD. Additionally, there are transactions which are entered into in other currencies and are not significant in relation to the total volume of the foreign currency exposures. The Company hedges some trade receivables and future cash flows upto a maximum of 6 months forward based on historical trends, budgets and monthly sales estimates.

Price risk is the risk that the value of the financial instrument will fluctuate as a result of changes in market prices which arises on account of movement in interest rates, liquidity and credit quality of underlying securities. The primary goal of the Company's investment in mutual funds is to hold investments for short term for strategic purpose. Management monitors their performance and they are managed on fair value basis. Further there is no price risk for investment in Clean Max Everglades Pvt Ltd.

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

The Company establishes a loss allowance that represents its estimate of expected losses in respect of trade receivables. The maximum exposure to credit risk as at reporting date is from trade receivables amounting to '593.43 Lakhs (March 31, 2025: ' 317.51 Lakhs). The movement in loss allowance in respect of trade receivables during the year was as follows:

C Liquidity Risk :

Liquidity risk refers to 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 objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company generates cash flows from operations to meet its financial obligations, maintains adequate liquid assets in the form of cash & cash equivalents and has undrawn short term line of credits from banks to ensure necessary liquidity.

40 OPERATING SEGMENT

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

The Company is engaged in the business of manufacturing and trading in pharmaceutical products. The entire business is considered as a single operating segment for the purpose of making decision on allocation of resources and assessing its performance. ^{1 2 3}

42 DISCLOSURE REQUIREMENT AS PER SCHEDULE III

(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 charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(v) 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.

(vi) The Company does not have any 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).

(vii) The Company is not declared as wilful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(viii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(ix) The Company doesn't have any co-owned properties or the properties (including properties for which the lease agreement executed and disclosed as 'Right-of-Use Assets' in restated consolidated financial information) title deed of which are held by the others.

(x) The Company has not granted any Loans or Advances in the nature of loans to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person.

43 On 21 November 2025, the Government of India notified four Labour Codes consolidating 29 existing labour laws. The Ministry of Labour and Employment has issued draft Central Rules and FAQs to facilitate assessment of the financial impact arising from these changes. Based on management's assessment including actuarial valuation, considering the best information available and ICAI guidance, the Company has recognised an incremental liability of ' 327.54 lakhs towards employee benefit obligation, primarily arising from the revised definition of wages under the New Labour Codes. Considering the event as regulatory-driven and non-recurring in nature, the impact of the same has been disclosed under exceptional items in the standalone financial statements for the year ended 31 March 2026. The Company continues to monitor the notification of final Central/State rules and related clarifications and will evaluate and account for any additional impact in the period in which such rules are notified or clarifications issued.

44 DISCLOSURE FOR MAINTENANCE OF BOOKS OF ACCOUNTS WITH AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) has issued a notification dated 24 March 2021 (Companies(Accounts) Amendments Rules, 2021) which is effective from 1 April 2023, states that every Company which uses accounting software for maintaining its books of account shall use only such accounting software which has a feature of recording audit trail of each and every transaction, and further creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

In respect of accounting software, the Company has advanced version of the accounting software having feature of recording audit trail of each and every transaction, and creating an edit log of each change made along with the date when such changes were made and also audit trail cannot be disabled. Further, other than the period where audit trail was not enabled in the previous years, the audit trail has been preserved by the Company as per the statutory

45 EVENTS AFTER THE REPORTING PERIOD:

(a) The board of directors have recommended final dividend of ' 7.55/- per fully paid up equity share of ' 1/- each for financial year ended March 31, 2026 on outstanding paid up share capital of the company as on date, in its board meeting held on May 29, 2026, subject to approval of shareholders at ensuing annual general meeting of the Company.

(b) Celliimune Biotech Private Limited that is incorporated on 15 January 2025 has been acquired by Concord Biotech Limited as on 2 April 2026. As at 31 March 2026 the company has invested ' 1.2 Lakhs for acquisition of shares out of total consideration of Rs 66 Lakhs for this acquisition. Celliimune Biotech Private Limited became a wholly owned subsidiary on 2 April 2026.

1

The revenue information above is based on the locations of the customers.

2

Non Current Operating Assets for this purpose consist of property, plant and equipment, capital work-in-progress, intangible assets, right-of use assets and investment in joint venture, Investment in Palvella Therapeutics Inc, Clean Max Everglades Pvt Ltd, Stellon Biotech Inc, Concord Lifegen Limited and Celliimune Biotech Pvt Ltd.

3

Non Current Investment in Concord Biotech Japan K.K., Stellon Biotech Inc, Concord Lifegen Limited and Celliimune Biotech Pvt Ltd is considered as unallocable.

Information about major customers:

There are no customers accounting for more than 10% of the Revenue in the year ended 31 March 2026 and Previous year 31 March 2025.