Notes to Accounts of Anthem Biosciences Ltd.

Mar 31, 2026

Investment in Equity Instrument- wholly owned Subsidiary company

1. Investment in Neoanthem Life Sciences Private Limited, 375,150,000 equity shares of Rs. 10 each (FY2025: 100,150,000 equity shares of Rs.

10/- each), constitutes 100% of the capital of that company. The investment also includes Rs.5.19 Million representing Share Based Payment Expenses recognised in respect of options granted to employees of Subsidiary company, accounted as deemed investment in accordance with Ind AS 102.

Investment in Equity Instrument - Others

1. Investment in Four EF Renewables Private Limited, 205,338 equity shares of Rs. 100/- each (FY2025:2,05,338 equity shares of Rs. 100/-each)

2. Investment in Ampyr Renewable Energy Resources Eleven private limited, 115,321 equity shares of Rs. 10/- each (FY2025: 1,669,668 equity shares of Rs.10/-each)

3. Investment in Isharays Energy One private limited, 2,000,000 equity shares of Rs. 10/- each (FY2025: 2,000,000 equity shares of Rs.10/-each)

4. Investment in Suryaurja One Private Limited 3,759,000 equity shares of Rs. 10/- each (FY2025: 3,759,000 equity shares of Rs.10/-each)

Investment in Preference Shares - Others

1. Investment in Four EF Renewables Private Limited, 410,677 Preference shares of Rs. 100/- each (FY2025: 4,10,677 preference shares of Rs.100/-each)

2. Investment in Ampyr Renewable Energy Resources Eleven Pvt Ltd, 3,339,337 Preference shares of Rs. 10 each (FY2025: 3,339,337 Preference shares of Rs.10 each)

15.1 The Company has only equity shares having a face value of Rs.2/- each.

15.2 Terms/ Rights attached to equity shares

Each holder of the equity share, as reflected in the records of the Company as of the date of the shareholders meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholders meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company after distribution of amounts payable to preference shareholders & any statutory liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company had allotted 526,603,200 equity shares of Rs. 2/- each fully paid up as bonus shares on November 28, 2022 in the ratio of 12:1 (Twelve equity shares of ''Rs. 2/-each for every one equity share of ''Rs. 2/- each held in the Company as on the record date i.e. 31^st October 2022) by capitalisation of capital redemption reserve and general reserves of the company.

The Board of Directors at its meeting held on December 11, 2023 had approved the buy-back of 11,409,700 fully paid up equity shares of face value of Rs.2/- each from the equity shareholders of the Company, at a price of Rs. 130.55/- per equity share (Maximum Buy-Back price)and such aggregate amount not exceeding Rs.1,489,536,335/- (Maximum Buy-back Size, excluding transaction costs and taxes thereon). Buy Back is undertaken through the offer letter on such terms and conditions as the board may deems fit.

During the year, the Company completed its Initial Public Offering through an Offer for Sale of 59,575,319 equity shares by existing shareholders. As the Offer for Sale did not involve any fresh issue of equity shares by the Company, there has been no change in the issued, subscribed and paid-up share capital of the Company pursuant to the listing.

Nature and purpose of reserves

i) Capital Redemption Reserve

The reserve was created on buy-back of equity shares out of free reserves, in accordance with Section 69 of the Companies Act, 2013.

ii) General Reserve

Represents amounts transferred from retained earnings from time to time for appropriation purposes

iii) Share Premium Reserve

Represents the premium received over and above the face value on issue of equity shares

iv) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders

v) Share Based Payment

Relates to share options granted by the Company to its employees under its Employee Share Option Plan 2024

vi) Components of Other Comprehensive Income

Represents cumulative actuarial gains and losses on remeasurement of defined benefit plans

Terms of Security

17.1 The term loan from Biotechnology Industry Research Assistance Council (BIRAC) is secured by a charge on the equipment and machinery procured using the loan proceeds, and carries interest at a concessional rate of 2.00% per annum.

17.2 Cash credit and other fund-based and non-fund-based facilities from Citibank & HDFC Bank are secured by a first charge on a pari passu basis over the Company''s current assets (inventories and trade receivables) and a second charge on a pari passu basis over movable Property, Plant & Equipment, supported by a demand promissory note and letter of continuity. These facilities are repayable on demand and carry interest in the range of 8.60% to 9.02% per annum, subject to periodic reset.

17.3 The term loan from Citi Bank is secured by an exclusive charge over the Company''s movable Property, Plant & Equipment and carries interest linked to the [1-month T-bill rate] plus 50 basis points.

32. Research and development expenditure

Expenditure on research activities are recognized as expenses and charged to Statement of profit and loss. Development costs of products are also charged to the Statement of profit and loss unless a product''s technological feasibility has been established and the ability of the asset to generate future economic benefits, in such case expenditure is capitalized. The amount capitalized comprises expenditure that can be directly attributed or allocated on a reasonable and consistent basis to creating, producing and making the asset ready for its intended use. Fixed assets utilized for research and development are capitalized and depreciated in accordance with the policies stated for Tangible Assets and Intangible Assets. During the year, the below mentioned expenditure is incurred towards research and development:

(b) Gratuity

The Company provides its employees with benefits under a defined benefit plan referred to as the Gratuity Plan, administered through Anthem Bioscience Employees Group Gratuity Trust. The Gratuity Plan entitles an employee who has rendered a minimum specified period of continuous service to receive a lump-sum payment at retirement, death, incapacitation or termination of employment, based on the last drawn salary and years of service, in accordance with the Payment of Gratuity Act, 1972. This defined benefit plan exposes the Company to actuarial risks such as longevity risk, interest rate risk, salary escalation risk and market risk on plan assets. The liability towards gratuity is provided for on the basis of independent actuarial valuation using projected unit credit method.

(c) Compensated Absences- Unfunded Obligation

The Company provides for compensated absences to its employees. Employees can carry forward a portion of unutilised accumulated leave and use it in future service periods or receive cash at retirement or termination of employment. The Company determines this expense based on actuarial valuation of the present value of the obligation using the projected unit credit method.

35. Exceptional items

On November 21, 2025, the Government of India notified four new Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules and FAQs in this regard. The Company has assessed and made a provision, as an Exceptional Item consistent with the guidance provided by the Institute of Chartered Accountants of India, for the year ended March 31, 2026.

For the year ended 31 March 2026, the net expense recognized in "Exceptional Item" amounts to Rs. 240.13 million in the Standalone financial results.

In case of any further clarification from the Government on other aspects of the Labour Codes, the Company will evaluate and account for differential impact, if any, in subsequent periods.

Carrying amounts of cash and cash equivalents and bank balances, trade receivables, loans and trade payables approximate the fair value due to their nature. Carrying amounts of other financial assets and other financial liabilities which are subsequently measured at amortised cost also approximate the fair value due to their nature in each of the periods presented. Fair value measurement of lease liabilities is not required.

38. Financial Risk Management

The Company’s activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company when necessary uses derivative financial instruments to mitigate foreign exchange related risk exposures. It is the Company’s policy that no trading in derivative for speculative purposes may be undertaken. In addition, a portion of the Company’s receivables are naturally hedged on account of some portion of the raw material and consumables procurement being imports, and denominated in the U.S. Dollar.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(a) Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract,leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks/ financial institutions and other financial instruments. The Company has no significant concentration of credit risk with any counterparty

(b) Trade and other receivables:

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

(c) Investments:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors.

(d) Liquidity risk:

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Also, the Company has unutilized credit limits with banks.

The Company’s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

(e) Foreign currency risk:

The Company’s exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. Dollars). A significant portion of The Company’s revenues are in US Dollars while a significant portion of its costs are in Indian Rupees. As a result, if the value of the Indian Rupee appreciates relative to these foreign currencies, The Company’s revenues measured in Rupees may decrease. The exchange rate between the Indian Rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company has an internal committee which meets on a periodic basis to formulate the strategy for foreign currency risk management. When necessary, the Company uses derivative financial instruments, such as foreign exchange forward contracts, to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and trade receivables.

As at March 31,2026, every 1% increase /decrease in the respective foreign currencies compared to functional currency of the company would result in increase/decrease in the companys''s profit before taxes for the year by 36.70 millions

As at March 31,2025, every 1% increase /decrease in the respective foreign currencies compared to functional currency of the company would result in increase/decrease in the companys''s profit before taxes for the year by 27.62 millions

(f) Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to The Company’s debt obligations with floating interest rates and investments. The Company’s borrowings and investments are primarily short-term, which do not expose it to significant interest rate risk.

The Company is predominantly equity financed which is evident from the capital structure table. Further, The Company has always been a net cash Group with cash and bank balances along with investment which is predominantly investment in liquid and short term mutual funds being far in excess of debt.

40. Contingent Liabilities & Capital Commitments
Particulars	As at March 31, 2026	As at March 31, 2025
Commitments
Estimated amount of expected capital commitments	3,758.72	777.49
Contingent liabilities
Claims against the company not acknowledged as debts:
Income tax - AY 2015-16 - CIT Appeals 1, Bengaluru*	28.50	28.50
Income tax - AY 2016-17 - ACIT, Bengaluru*	1.84	1.84
Income tax - AY 2017-18 - ITAT , Bengaluru*	5.50	5.50
Income tax - AY 2018-19 - ACIT , Bengaluru	38.15	38.15
Income tax - AY 2020-21 - CIT (A) Bengaluru*	4.81	4.81
Income tax - AY 2023-24 - CIT (A) Bengaluru*	60.67	60.67
Income tax - AY 2024-25 - CIT (A) Bengaluru*	12.57	-
Service Tax-Appeal-FY: 2011-2015*	1.10	1.10
Goods and Service Tax: FY 2017-18-Bengaluru	-	4.55
Goods and Service Tax: FY 2018-19-Bengaluru	-	148.54
Goods and Service Tax: FY 2019-20-Bengaluru*	3.13	3.13
Customes and Exercise Appellate Tribunal: FY24-25	0.44	0.44
Goods and Service Tax: FY2018-19-commissioner of central tax bengaluru-Refund received dispute*	153.90	153.90
*Amount shown is net of pre-deposit paid
Others:
Bank guarantees	18.28	18.28
Corporate guarantees:
Guarantees given to Federal Bank on behalf of Neoanthem Lifesciences Pvt Ltd (wholly owned subsidiary) & Anthem Biopharma Pvt Ltd (group company) for securing financial assistances in the form for term loan and working capital loans.	565.00	75.00

41. Segment information :

Segments are identified in line with Indian Accounting Standard (Ind AS) 108 "Operating Segments", taking into consideration the internal organization and business activities in which it engages and the economic environments in which it operates and separate financial information availability. The Company''s Chief Operating Decision Maker ("CODM") has been identified as the Board of Directors. The CODM reviews the Company''s performance and allocates resources based on the analysis of revenue from the following two reportable segments, identified in accordance with Ind AS 108 "Operating Segments":

Valuation Process

The fair value of stock options granted under the Company''s Plan has been determined using the Black-Scholes option pricing model, based on a valuation report obtained from an independent valuer at the time of grant, when the Company''s shares were not listed on any stock exchange. The valuation report provides a single fair value for the grant as a whole. In accordance with Ind AS 102, the Company recognises employee compensation cost on a graded vesting basis, with the related expense for each tranche recognised over its respective vesting period; the single fair value from the valuation report has been applied uniformly across all tranches for this purpose.

47. Event occuring after balance sheet date

The Board of Directors of the Company in their meeting held on 19^th May 2026, have propsed a dividend of Rs.2.00 per equity share for the financial year ended March 31, 2026, subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in cash outflow of approximately INR 1,126 Million.

48. Other Disclosures

During the year ended 31 March 2026, the Company has completed its Initial Public Offer of equity shares of face value of Rs. 2 each at a issue price of Rs. 570 per share (including premium of Rs. 568 per share) comprising of Offer for Sale of 59,575,319 equity shares by selling share holders aggregating to Rs.33,950 million. The equity shares of the Company got listed on National Stock Exchange of India limited and Bombay Stock Exchange on July 21, 2025.

49. Other Statutory Disclosures

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

(ii) 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.

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

(iv) 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 during the financial year.

(v) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(vii) The Company has not 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.

(viii) The Company has not been declared as Willfull Defaulter by any Bank or Financial Institutions or any other lender.

(ix) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act r.w Companies (Restriction on

number of layers) Rules, 2017.

(x) For the financial year ended 31 March 2026, the Company''s accounting software has an audit trail functionality. This feature remained operational throughout the year, capturing a chronological record of all relevant transactions processed within the software. The audit trail has not been tampered with during the year. The audit trail logs have been preserved as per the statutory requirements for record retention.

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Mar 31, 2024

(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 the reporting 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:

a) Sale of goods & services:

Company earns revenue primarily from sale of goods, providing scientific & technical consultancy services. Revenue is recognised
upon transfer of control of promised products or services (performance obligation) to the customers in an amount that reflects
the consideration which the company expects to receive in exchange for those products or services.

The amount of revenue to be recognised (transaction price) is based on the consideration expected to be received in exchange
for goods, excluding amounts collected on behalf of third parties such as sales tax or other taxes directly linked to sales. If a
contract contains more than one performance obligation, the transaction price is allocated to each performance obligation
based on their relative stand-alone selling prices.

Revenue from product sales are recorded net of allowances for estimated rebates, cash discounts and estimates of product
returns, all of which are established at the time of sale.

The company adjusts the promised amount of consideration for the effects of time value of money if the timing of payments
agreed to by the parties to the contract provides the customer with a significant benefit of financing the transfer of goods or
services to the customer. The impact of the time value of money is shown as Contract Liability.

b) Rental income:

Rental income is recognised in 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. Lease incentives granted are recognised as an integral
part of the total rental income, over the term of the lease.

c) Dividend & interest income :

Dividend income is recorded when the right to receive payment is established. Interest income is recognised using the effective
interest method.

(I) Finance expense:

Finance expenses consist of interest expense on loans and borrowings. Borrowing costs are recognized in the statement of
profit and loss using the effective interest method.

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.

(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 income tax:

Deferred income tax is recognized using the balance sheet approach. Deferred income 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 income 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 income 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
income tax liabilities are recognized for all taxable temporary differences.

The carrying amount of deferred income 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 income tax asset to be utilized.

Deferred income 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 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.

(N) Inventories:

Inventories consists 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 are determined on a moving average basis and/specific cost wherever applicable.
Cost of work in progress & finished goods produced includes direct material, labour cost and a proportion of manufacturing
overheads.

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