Accounting Policies of Anthem Biosciences Ltd. Company

Mar 31, 2026

1. Corporate information:

Anthem Biosciences Limited (Formerly known as "Anthem Bioscience Pvt Ltd) ("the Company") is a public listed company incorporated and domiciled in India. The registered office of the Company is situated in Bangalore, in the state of Karnataka. The company is an innovation-driven and technology-focused contract Research, Development and Manufacturing Organization ("CRDMO") with full integrated operations providing end to end drug discovery, drug development and drug manufacturing by delivering small molecules, large molecules, peptides,lipids,oligos,high-potent APIs and ADC solutions for global pharmaceutical and biotechnology partners.

The equity shares of the Company were listed on National Stock Exchange of India Limited and Bombay Stock Exchange on 21 July 2025.

2. Basis of preparation and presentation and material accounting policy information:

(A) Basis of preparation and presentation of standalone financial statements:

a) Statement of compliance:

The standalone financial statements have been prepared in accordance with the Indian Accounting Standard ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant standards of the Companies Act, 2013. These standalone Financial Statements have been prepared for the company as a going concern using the accounting policies set out below, which have been applied consistently to all periods presented, except where a new Ind AS or an amendment to an existing Ind AS has been applied for the first time during the year. These Standalone Financial Statements were authorised for issuance by the company''s Board of Directors in the Board Meeting held on 19^th May 2026.

b) Basis of preparation and measurement:

The standalone financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:

i. Certain financial assets and liabilities which are measured at fair value (refer accounting policy on financial instruments);

ii. Defined benefit and other long-term employee benefits obligations, which are measured at the present value of the estimated future cash outflows

c) Use of estimates and judgements:

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the Standalone financial statements.

Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes:

• Financial instruments- classification, fair value measurement and impairment

• Useful lives of property, plant and equipment, intangible assets and wherever applicable, investment property;

• Provision for income taxes and related tax contingencies

• Measurment of Defined Benefit Obligation- key actuarial assumption

• Net Realisable Value of Inventories

• Measurment of expected credit losses on financial assets

• Measurment of share-based payment arrangements

d) Fair value Measurment:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as a net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at the measurement date;

• Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly, for the asset or liability and

• Level 3 inputs for the asset or liability that are not based on observable market data

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred."

(i) Functional and presentation currency:

Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (i.e. the “functional currency”). The financial statements are presented in Indian Rupee, the national currency of India, which is the functional currency and presentation currency of the company.

All financial information presented in Indian rupees has been rounded to the nearest millions, unless otherwise stated. Amount having absolute value of less than 10,000 Rupees have been rounded and are presented as 0.00 million in the financial statements. Acocrdingly, sub-totals may not always equal the sum of the individual line items due to rounding.

(ii) Foreign currency transactions and balances:

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates prevailing at the dates of the respective transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated at the exchange rate prevailing at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/ (losses). Non monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevailing on the date of the original transaction.”Foreign currency gains and losses are reported on a net basis. This includes changes in the fair value of foreign exchange derivative instruments, which are accounted at fair value through profit or loss.

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

(iii) Financial instruments:

Initial Recognition

Trade receivables and contract assets that do not contain a significant financing component are initially recognised at transaction price when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value. Transaction costs that are attributable to the acquisition of the financial asset(other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place(regular way trade) are recognised on trade date. While, loans and borrowings and payables are recognised net of directly attributable transaction costs.

Classification and subsequent measurement - financial assets

On initial recognition, financial assets are classified as measured at: (i) amortised cost, (ii) fair value through other comprehensive income (FVOCI), or (iii) fair value through profit or loss (FVTPL), based on the Company’s business model for managing the financial assets and the contractual cash flow characteristics of the financial asset.

(i) Financial assets at amortized cost:

A financial asset shall be measured at amortized cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

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

These assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, net of loss allowance for impairment. Financial assets at amortised cost primarily comprise trade receivables, cash and cash equivalents, security deposits, employee and other advances and other eligible current and non current receivables.

(ii) Financial assets at FVTPL:

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as FVTPL. In addition the company may elect to designate the financial asset, which otherwise meets amortized cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. Financial assets included within the FVTPL category are measured at fair values with all changes in the statement of profit and loss.

(iii) Investment in Subsidiary

Equity 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 in the statement of profit and loss. On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.

Classification and subsequent measurement - financial liabilities

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative, or it is designated as such on initial recognition. Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest rate method. For financial liabilities classified as FVTPL, subsequent changes in fair value are recognised in the Statement of Profit and Loss.

Derecognition:

(a) Financial Asset:

The Company derecognises a financial asset when:

• the contractual rights to the cash flows from the financial asset expire; or

• it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or

• the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

Where the Company retains substantially all of the risks and rewards of ownership of a transferred asset, the Company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the sum of (i) the consideration received (including any new asset obtained less any new liability assumed) and (ii) any cumulative gain or loss that had been recognised in OCI is recognised in the Statement of Profit and Loss.

(b) Financial Liabilities:

The Company derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different from the original. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability recognised is recognised in the Statement of Profit and Loss.

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.

Derivative financial instruments and hedge accounting:

Derivative financial instruments such as forward exchange contracts are used to hedge foreign currency risk. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re measured to their fair value at the end of each reporting period.

Where derivative financial instruments are not designated as hedging instruments, they are classified as financial assets or financial liabilities at FVTPL, and changes in their fair value are recognised immediately in the Statement of Profit and Loss within foreign exchange gains / losses or finance costs, as appropriate

If the Company designates a derivative as a hedging instrument in a qualifying cash flow hedge, the effective portion of changes in the fair value of the hedging instrument is recognised in OCI and accumulated in equity, and any ineffective portion is recognised immediately in the Statement of Profit and Loss. Amounts accumulated in equity are reclassified to the Statement of Profit and Loss in the periods when the hedged item affects profit or loss. When a hedging instrument expires or is sold, terminated or exercised, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss in equity remains there until the forecast transaction occurs or is no longer expected to occur, at which point it is reclassified to the Statement of Profit and Loss.

(B) Property, plant and equipment:

a) Recognition and measurement:

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset. Property, Plant and Equipment not ready for its intended use at the date of Balance Sheet are disclosed as “Capital Work in progress”. Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capital advances and capital work- in-progress respectively. Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date are disclosed under ‘other assets’.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and cost can be measured reliably. All other repairs & maintenance cost are recognised in statement of profit and loss.

Any gain or loss on disposal of an item or when no future economic benefits are expected from its use of PPE is recognised in standalone statement of profit and loss. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset.

b) Depreciation:

The company depreciates property, plant and equipment over the estimated useful life on a written down value basis from the date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements are amortized over the lower of estimated useful life and lease term. Depreciation is computed based on the useful life estimated by management. Where the useful lives differ from those specified in Schedule II of the Companies Act, 2013, the difference is based on a technical assessment by management. The estimated useful lives of assets for the current and comparative period of significant items of property, plant and equipment are as follows:

Category	Useful Life (years)
Free Hold Land	No depreciation
Roads	5-10
Buildings	3-60

Category	Useful Life (years)
Plant and machinery	3-20
Electrical installations	10
Furniture and fittings	5-10
Laboratory equipments	3-10
Office equipment	5
Pipelines	10-15
Computers and DP units	3-6
Motor vehicles	8

Depreciation on additions/disposals is provided on a pro-rata basis i.e. from/upto the date on which asset is ready for use/disposed of. Depreciation methods, useful lives and residual values are reviewed at each reporting date. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment."

(C) Intangible assets:

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective estimated useful lives on a written down value basis, from the date that they are available for use. The estimated useful lives of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization period is revised to reflect the changed pattern, if any. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

The estimated useful lives of intangibles are as follows:

Category	Useful Life (years)
Software licenses	Earlier of license
	period or 1-5 years

(D) 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.

The company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

The company recognizes right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of- use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any re-measurement of the lease liability. The right-of-use asset is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of- use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the incremental borrowing rate. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently re-measured by increasing the carrying amount to reflect interest on the

lease liability, reducing the carrying amount to reflect the lease payments made and re-measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.

The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the company recognises any remaining amount of the re-measurement in statement of profit and loss.

The company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognised as an expense on a straight-line basis over the lease term.

(E) Impairment:

(a) Financial assets:

In accordance with Ind AS 109, the Company recognises loss allowances for expected credit losses (ECL) on financial assets measured at amortised cost. For trade receivables and contract assets, the Company applies the simplified approach and recognises lifetime ECL from initial recognition. The ECL allowance for trade receivables is determined using a provision matrix based on historically observed default rates, adjusted for forward looking information where appropriate. The provision matrix is applied at an individual invoice level.

For all other financial assets, the Company applies the general approach and recognises 12 month ECL, unless there has been a significant increase in credit risk since initial recognition, in which case lifetime ECL is recognised. If, in a subsequent period, the credit risk on the financial asset improves so that it is no longer considered to have increased significantly since initial recognition, the loss allowance reverts to an amount equal to 12 month ECL.

ECL is measured as the difference between the contractual cash flows that are due to the Company in accordance with the contract and the cash flows that the Company expects to receive, discounted at the original effective interest rate. Loss allowances for financial assets measured at amortised cost are presented as an allowance in the balance sheet and reduce the gross carrying amount of the asset. Loss allowances and reversals are recognised in the Statement of Profit and Loss. Financial assets are written off when there is no reasonable expectation of recovery.

(b) Non-financial assets:

The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of nonfinancial assets is impaired. If any such indication exists, the company estimates the amount of impairment loss. An impairment loss is calculated as the difference between an asset’s carrying amount and recoverable amount. Losses are recognised in profit or loss and reflected in an allowance account. When the company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or group of assets (the “cash-generating unit”).

(F) Employee benefits:

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.

The Company has the following employee benefit plans:

a) Provident Fund:

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss for the year when the employee renders the related service. Both the eligible employees and the Company make monthly contributions to the Government administered provident fund scheme equal to a specified percentage of the eligible employee’s salary. Amounts collected under the provident fund plan are deposited with in a government administered provident fund. The Company has no obligation other than the contribution payable to provident fund authorities.

b) Gratuity:

The Company provides for gratuity covering the eligible employees of the company. The Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. Company’s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation, performed by an independent actuary, at each balance sheet date using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

c) Compensated absences:

The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the unutilized accumulating compensated absences and utilize it in future periods or receive cash at retirement or termination of employment. The Company records an obligation for compensated absences in the period in which the employee renders the services that increases this entitlement.

The Company measures the expected cost of compensated absences as the additional amount that the company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the Standalone statement of profit and loss.

(G) Provisions:

Provisions are recognized when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of there porting period, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts are measured at the present value of lower of the expected net cost of fulfilling the contract and the expected cost of terminating the contract.

(H) Revenue:

The Company derives revenue principally from (i) the sale of manufactured products comprising catalytic preparations, specialty organic molecules, biologically active peptides and other organic compounds, and (ii) the rendering of contract research, development and manufacturing services and scientific and technical consultancy services to customers engaged in the pharmaceutical, biotechnology, agrochemical and specialty chemicals industries.

Revenue from contracts with customers is recognised in accordance with Ind AS 115, “Revenue from Contracts with Customers”. The Company recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is recognised on satisfaction of the performance obligation(s) in a contract by applying the following five-step model:

(i) identifying the contract with a customer; (ii) identifying the separate performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the separate performance obligations; and (v) recognising revenue when (or as) each performance obligation is satisfied.

A performance obligation is satisfied, and revenue recognised, when control of the promised good or service is transferred to the customer, either over time or at a point in time. Revenue is measured at the amount of the transaction price allocated to that performance obligation, and excludes amounts collected on behalf of third parties (such as goods and services tax and other indirect taxes). Amounts disclosed as revenue are net of returns, trade allowances, rebates and discounts.

a) Sale of goods:

Revenue from the sale of manufactured products is recognised at the point in time at which control of the goods is transferred to the customer, which is generally on shipment or delivery of the products in accordance with the agreed delivery terms (Incoterms). This is the point at which the customer obtains the ability to direct the use of, and obtain substantially all of the remaining benefits from, the goods, the Company has a present right to payment, legal title and the significant risks and rewards of ownership have passed to the customer, and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.

b) Rendering of services - contract research, development and manufacturing and scientific and technical consultancy:

Where the Company enters into contracts for research, development, manufacturing or scientific and technical consultancy services, the timing and pattern of revenue recognition depend on the terms of the contract and the nature of the performance obligation. The Company recognises revenue over time where the performance creates or enhances an asset that has no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date; otherwise, revenue is recognised at a point in time.

c) Contracts with multiple performance obligations:

When a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation on the basis of the relative stand-alone selling prices of the goods or services promised. Where the stand-alone selling price is not directly observable, the Company estimates it using an appropriate method.

d) Variable consideration:

The consideration receivable under a contract may be variable on account of rebates, cash and volume discounts, price concessions, incentives, rights of return or similar items. The Company estimates variable consideration using either the expected value method or the most likely amount method, whichever better predicts the amount of consideration to which it will be entitled. Such consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal of the cumulative revenue recognised will not occur when the associated uncertainty is subsequently resolved. Revenue from product sales is recorded net of allowances for estimated rebates, cash discounts and expected product returns, which are estimated at the time of sale and reassessed at each reporting date.

e) Significant financing component

The Company adjusts the promised amount of consideration for the effects of the time value of money where the timing of the payments agreed by the parties to the contract provides the customer or the Company with a significant benefit of financing the transfer of goods or services. In such cases, the financing component is recognised as interest income or interest expense, as appropriate, separately from revenue from contracts with customers, over the financing period. As a practical expedient, the Company does not adjust the transaction price for a significant financing component where, at contract inception, the period between the transfer of the promised goods or services and payment by the customer is expected to be one year or less.

f) Contract balances

- Trade receivables: A receivable is recognised when the Company’s right to consideration becomes unconditional, that is, when only the passage of time is required before the consideration is due. Trade receivables are measured in accordance with the Company’s policy on financial instruments and are assessed for impairment under the expected credit loss model in Ind AS 109.

- Contract assets (unbilled revenue): A contract asset is recognised when the Company has satisfied, or partially satisfied, a performance obligation by transferring goods or services to the customer but the right to consideration is conditional on something other than the passage of time, such as future performance. Where the services rendered exceed the amount billed, the excess is recognised as a contract asset (unbilled revenue). Contract assets are assessed for expected credit losses in accordance with Ind AS 109.

- Contract liabilities (deferred revenue and advances from customers): A contract liability is recognised when the Company receives consideration, or has an unconditional right to receive consideration, from a customer in advance of transferring the related goods or services. Where the amounts billed or received exceed the services rendered, the excess is recognised as a contract liability. Contract liabilities are recognised as revenue when the Company performs under the contract."

g) Export Incentive

The Company, operating as an export-oriented undertaking, is eligible for export incentives under schemes such as the Remission of Duties and Taxes on Exported Products (RoDTEP), duty drawback and other similar schemes. Export incentives are recognised as other operating revenue when the right to receive the credit or benefit is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate realisation of the incentive and the collection of the relevant export proceeds.

h) Other Income:

- Rental income:

Rental income arising from operating leases is recognised in the statement of profit and loss on a straight-line basis over the term of the lease, except where the rentals are structured to increase in line with expected general inflation or where another systematic basis is more representative of the time pattern in which the benefit is derived. Lease incentives granted are recognised as an integral part of the total rental income over the term of the lease.

- Dividend & interest income :

Dividend income is recorded when the right to receive payment is established, which is generally when the shareholders approve the dividend. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. For all financial assets measured at amortised cost, interest income is recognised using the effective interest rate (EIR) method.

(I) Borrowing Cost:

Borrowing Cost consist of interest expense on loans and borrowings. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

(J) Income tax:

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

a) Current income tax:

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period.

The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.

b) Deferred tax:

Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.

Deferred tax asset is recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date

(K) Earnings per share (EPS):

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

(L) Research and development costs :

Research costs are expensed as incurred. Development costs are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the company has an intention and ability to complete and use or sell the software and the costs can be measured reliably.

(M) Government grants:

Grants from the government are recognised when there is reasonable assurance that:

(i) the company will comply with the conditions attached to them; and

(ii) the grant will be received.

Government grants related to revenue are recognised on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs which they are intended to compensate. Such grants are deducted in reporting the related expense. When loan or similar assistance is provided by government or related institutions, with an interest rate below the current applicable market rate, the effect of this favorable interest is recognized as government grant. The loan or assistance is initially recognized and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. Government grants received in relation to assets are recognised by deducting the grant from the carrying amount of the asset.

(N) Inventories:

Inventories consist of (a) Raw materials, (b) Work-in-progress and (d) Finished goods. Inventories are carried at lower of cost and net realizable value. The cost of raw materials is determined on a weighted average basis and/specific cost wherever applicable. Cost of work in progress & finished goods produced includes direct and indirect material.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated selling expenses. The write-down is reversed in a subsequent period to the extent the reasons for the write-down no longer exist.

(O) ESOP:

The company measures compensation cost relating to employee stock options plans using the fair valuation method in accordance with Ind AS 102, Share-Based Payment. Compensation expense is amortized over the vesting period as per graded vesting method. The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognised, together with a corresponding increase in Share based payment reserve in other equity, over the period in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the company’s best estimate of the number of equity instruments that will ultimately vest. When an award is cancelled by the company or by the counterparty, any remaining element of the fair value of the award is expensed immediately through the Statement of Profit and Loss. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The

impact of the revision is recognised in the Statement of Profit and Loss with a corresponding adjustment to the share-based payment reserve, such that the cumulative expense reflects the revised estimate.

(P) Exceptional Item:

Exceptional items refer to items of income or expense within the statement of profit and loss from ordinary activities which are nonrecurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Company.

(Q) Segment reporting:

Operating segments are identified and reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (""CODM"").

The Company has identified two reportable segments based on the nature of products and services offered:

(a) Contract Research Development and Manufacturing Services (""CRDMO""): comprising end-to-end comprehensive services across the New Chemical Entity (NCE) and New Biological Entity (NBE) lifecycle, covering contract research, development and manufacturing of development batches of molecules used for clinical (Phase I, II and III) trials up to commercial manufacturing, for both small molecules and biologics.

(b) Specialty Ingredients comprising manufacture and sale of complex specialized fermentation-based APIs, including probiotics, enzymes, peptides, nutritional actives, vitamin analogues and biosimilars, etc.

Segment revenue comprises revenue directly attributable to each segment. Since the Company does not maintain separate records of assets, liabilities or expenditure at the segment level, segment assets, segment liabilities and segment expenses are not disclosed. The entire operations of the Company are carried out from common integrated facilities, and costs, assets and liabilities are not separately identifiable to individual segments without arbitrary allocation.

(R) Cash & Cash Equivalent:

Cash and cash equivalent in the standalone balance sheet comprise cash at banks and on hand, debit balance in cash credit accounts 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 purposes of the cash flow statement, cash and cash equivalents include cash in hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft and are considered part of the company’s cash management system.

(S) Previous year’s figures have been re-grouped or re-classified to conform to the present year’s presentation.

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. 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.

---

Mar 31, 2024

Significant accounting policies:

(A) Basis of preparation and presentation:

a) Statement of compliance:

These standalone financial statements have been prepared in accordance with Indian Accounting Standards ("hereinafter
referred to as the "Ind AS") as notified by Ministry of Corporate Affairs pursuant to Section 133 of the companies Act, 2013 read
with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time

These standalone financial statements have been prepared for the Company as a going concern on the basis of relevant Ind
AS that are effective at the Company''s annual reporting date, March 31, 2024. These standalone financial statements were
approved and authorized for issuance by the Company''s Board of Directors on their meeting held on September 05, 2024.

b) Basis of measurement:

The financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following
material items that have been measured at fair value as required by relevant Ind AS:

i. Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments);

ii. Defined benefit and other long-term employee benefits.

c) Use of estimates and judgements:

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the
period in which the estimates are revised and in any future periods affected. In particular, information about significant areas
of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the
amounts recognized in the financial statements is included in the notes.

d) Fair valuation:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at
the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on
such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are
within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as a net
realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2 or 3 based on the degree to
which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement
in its entirety, which are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access
at the measurement date;

• Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly
or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

(i) Functional and presentation currency:

Items included in the financial statements of the Company are measured using the currency of the primary economic
environment in which the Company operates (i.e. the "functional currency"). The financial statements are presented in Indian
Rupee, the national currency of India, which is the functional currency of the Company.

(ii) Foreign currency transactions and balances:

Transactions in foreign currency are translated into the respective functional currencies using the exchange rates prevailing at
the dates of the respective transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at the exchange rates prevailing at reporting date of monetary assets and liabilities denominated in
foreign currencies are recognized in the statement of profit and loss and reported within foreign exchange gains/ (losses).

Non-monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the
exchange rate prevalent at the date of transaction.

(iii) Financial instruments:

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the
financial asset(other than financial assets recorded at fair value through profit or loss) are included in the fair value of the
financial assets. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place(regular way trade) are recognised on trade date. While, loans and borrowings and payables
are recognised net of directly attributable transaction costs.

For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories:
nonderivative financial assets comprising amortised cost, debt instruments at fair value through other comprehensive income
(FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL), non-derivative financial liabilities
at amortised cost or FVTPL and derivative financial instruments (under the category of financial assets or financial liabilities)
at FVTPL. The classification of financial instruments depends on the objective of the business model for which it is held.
Management determines the classification of its financial instruments at initial recognition.

(a) Non-derivative financial assets:

(i) Financial assets at amortized cost:

A financial asset shall be measured at amortised cost if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows and

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

They are presented as current assets, except for those maturing later than 12 months after the reporting date which are
presented as non-current assets. Financial assets are measured initially at fair value plus transaction costs and subsequently
carried at amortized cost using the effective interest rate method, less any impairment loss.

Amortized cost are represented by trade receivables, security deposits, cash and cash equivalents, employee and other advances
and eligible current and non-current assets. Cash and cash equivalents comprise cash on hand and in banks and demand
deposits with banks which can be withdrawn at any time without prior notice or penalty on the principal.

For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits
with banks, net of outstanding bank overdrafts that are repayable on demand, book overdraft and are considered part of the
Company''s cash management system.

(ii) Financial assets at FVTPL:

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified as FVTPL. In addition the Company may elect to designate the financial asset, which
otherwise meets amortized cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or
recognition inconsistency. Financial assets included within the FVTPL category are measured at fair values with all changes in
the statement of profit and loss.

(b) Non-derivative financial liabilities:

(i) Financial liabilities at amortized cost:

Financial liabilities at amortized cost represented by borrowings, trade and other payables are initially recognized at fair value,
and subsequently carried at amortized cost using the effective interest rate method.

(B) Property, plant and equipment:

a) Recognition and measurement:

Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes
expenditures directly attributable to the acquisition of the asset.

b) Depreciation:

The Company depreciates property, plant and equipment over the estimated useful life on a written down value basis from the
date the assets are ready for intended use. Assets acquired under finance lease and leasehold improvements are amortized over
the lower of estimated useful life and lease term. The estimated useful lives of assets for the current and comparative period of
significant items of property, plant and equipment are as follows:

Depreciation methods, useful lives and residual values are reviewed at each reporting date. When parts of an item of property,
plant and equipment have different useful lives, they are accounted for as separate items (major components) of property,
plant and equipment. Subsequent expenditure relating to property, plant and equipment is capitalized only when it is probable
that future economic benefits associated with these will flow to the Company and the cost of the item can be measured
reliably. Repairs and maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related
accumulated depreciation are eliminated from the financial statements upon sale or disposition of the asset and the resultant
gains or losses are recognized in the statement of profit and loss.

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of
property, plant and equipment not ready for intended use before such date are disclosed under capital advances and capital
work- in-progress respectively.

(C) Intangible assets:

Intangible assets are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their
respective estimated useful lives on a written down value basis, from the date that they are available for use. The estimated
useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand,
competition and other economic factors (such as the stability of the industry and known technological advances) and the level
of maintenance expenditures required to obtain the expected future cash flows from the asset.

The estimated useful lives of intangibles are as follows:

(D 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.

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the
contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price
of the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of- use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling
and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted
for any re-measurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-
use assets are determined on the same basis as those of property, plant and equipment. Right-of- use assets are tested for
impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using the incremental borrowing rate, if that rate can be readily determined.
If that rate cannot be readily determined, The Company uses incremental borrowing rate. The lease payments shall include
fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where The Company
is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease. The lease liability is subsequently re-measured by increasing the carrying
amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and re¬
measuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease
payments.

The Company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-
of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the
right-of-use asset is reduced to zero and there is a further reduction in the

measurement of the lease liability, The Company recognises any remaining amount of the re-measurement in statement of
profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease
term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these
leases are recognised as an expense on a straight-line basis over the lease term.

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of
impairment loss. The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade receivable.
The application of simplified approach does not require the Company to track changes in credit risk.

Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has
been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent
period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the company reverts to recognising impairment loss allowance based on 12-month ECL. Lifetime ECLs are the
expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month
ECL is a portion of the lifetime ECL which results from default events that are possible within 12-months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the
cash flows that the company expects to receive (i.e. all shortfalls), discounted at the original effective interest rate (EIR). When
estimating the cash flows, company is required to consider:

(i) All contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial
instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the
company is required to use the remaining contractual term of the financial instrument.

(ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

As a practical expedient, the Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable.
The provision matrix is based on its historically observed default rates over the expected life of the trade receivable. At every
reporting date, the historically observed default rates are updated. ECL impairment loss allowance (or reversal) recognised
during the period is recognised as income/expense in the statement of profit and loss.

The balance sheet presentation for various financial instruments is described below:

Financial assets measured at amortized cost, contractual revenue receivable. ECL is presented as an allowance, i.e. as an integral
part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset
meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(b) Non-financial assets:

ssesses at each reporting date whether there is any objective evidence that a non-financial asset or a group of non-financial
assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss. An impairment loss is
calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are recognised in profit or
loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the
asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss
is reversed through profit or loss. The recoverable amount of an asset or cash-generating unit (as defined below) is the greater
of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of
assets (the "cash-generating unit").

(F) Employee benefits:

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined
contribution plans or defined benefit plans. Under a defined contribution plan, the Company''s only obligation is to pay a fixed
amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits.
The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as
expense during the period when the employee provides service. Under a defined benefit plan, it is the Company''s obligation to
provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of

a) Provident Fund:

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the
statement of profit and loss for the year when the employee renders the related service and the contributions to the government
funds are due. The Company has no obligation other than the contribution payable to provident fund authorities.

b) Gratuity:

For the purpose of administration of gratuity of the employees of the Company, the Company has established Anthem
Biosciences Private Limited Employees Gratuity Trust. In accordance with the Payment of Gratuity Act, 1972, the Company
provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn
salary and years of employment with the Company. Company''s obligation in respect of the gratuity plan, which is a defined
benefit plan, is provided for based on actuarial valuation using the projected unit credit method.

Actuarial gains or losses are recognized in other comprehensive income. Further, the profit or loss does not include an expected
return on plan assets. Instead net interest recognized in profit or loss is calculated by applying the discount rate used to measure
the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below
the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on
the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

c) Compensated absences:

The employees of the Company are entitled to compensated absences. The employees can carry forward a portion of the
unutilized accumulating compensated absences and utilize it in future periods or receive cash at retirement or termination of
employment. The Company records an obligation for compensated absences in the period in which the employee renders the
services that increases this entitlement.

The Company measures the expected cost of compensated absences as the additional amount that the Company expects to
pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes
accumulated compensated absences based on actuarial valuation. Non-accumulating compensated absences are recognized
in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the statement of
profit and loss.