Auro Laboratories Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

Mar 31, 2026

A.12 Provisions

A provision is recognized when the Company has a present obligation Legal or Constructive that is reasonably estimable and it is
probable that an outflow of economic benefits will be required to settle the obligation. These estimates are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.

A.13 Segment Reporting

The Company operates in a single segment only i.e Manufacturing of Drugs.Thus, in the context of Ind AS 108 "Operating Segment",
issued by the Institute of Chartered Accountants of India, there is only one identified reportable segment.

A.14 Earnings per Share

Basic earnings per share are calculated by dividing the net profit/ loss for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are adjusted for the effects of diluted potential equity shares, if

A.15 Contingent Liabilities and Assets

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events beyond the control of the Company ora present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the financial statements. Contingent Assets are not disclosed in the

A.16 Impairment of Non -financial Assets

The carrying amounts of Non financial assets are reviewed at each balance sheet date for any indication of impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for
the amount by which the asset''s carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an asset''s
fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of
assets (cash-generating units). Non- financial assets that suffered an impairment are reviewed for possible reversal of the

A.17 Investments and Other financial assets

i) Classification

The Company classifies its financial assets at those to be measured subsequently at fair value (either through Fair Value Through
Other Comprehensive Income (FVTOCI), or Fair Value Through Profit or Loss (FVTPL)), and those measured at amortized cost. The
classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flow.

ii) Measurement

At Initial recognition, the Company measures a financial asset at its fair value except for trade receivables that do not contain a
significant financing component are measured at transaction price. In case of financial assets which are recognised at fair value
through profit and loss (FVTPL), its transaction cost is recognised in the statement of profit and loss. In other cases, the transaction
cost is attributed to the acquisition value of the financial asset. The subsequent measurement of a financial asset depends on the
classification of the asset on the basis of business model for managing such assets and the contractual cash flow characteristics of such
asset.

Amortised Cost

Financial assets are subsequently measured at amortised cost using effective interest rate method (EIR), if these financial assets are
held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
outstanding. The losses arising from the impairment are recognized in the Statement of Profit and Loss.

Fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent
solely payments of principal and interest, are measured at FVTOCI. Movements in the carrying amount are taken through OCI, except
for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in
Fair Value through profit or loss (FVTPL)

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value
with all changes in fair value, including interest income if any, recognised in ''other income'' in the statement of profit and loss.

iii) Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised costand
FVTOCI debt instruments. The impairment methodology applied depends on whether there has been significant increase in credit
risk. Note 39 details how the company determines whether there has been a significant increase in credit risk. For trade receivables,
the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected credit losses to
be recognised from initial recognition of the receivables.

iv) Derecognition of financial assets

A financial asset is derecognised only when the Company has transferred the rights to receive cash flows from the financial asset or
when the rights to receive cash flows from the asset have expired.

Financial liabilities

1) Initial recognition and measurement

The Company classifies all financial liabilities as subsequently measured at amortised cost, except forfinancial liabilities at fairvalue
through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value.

2) Subsequent measurement

Financial liabilities are carried at amortised cost using the effective interest method. For trade and other payables maturing within
one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

3) Derivative Financial Instruments

Derivative financial liabilities are measured at fair value through Profit and loss.

Derecognition of Financial Instruments:

The company derecognises a financial asset when the contractual rights to the cash flows from the Financial Asset expire or it
transfers the Financial Asset and the transfer qualifies for derecognition under Ind AS 109. A Financial Liability (or part of Financial
Liability) is derecognised from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled
Offsetting of financial instruments:

Financial assets and financial liabilities are offsetted and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and
settle the liabilities simultaneously.

A.18 Fair Value Measurement

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. The fair value measurement is based on the presumption that the transaction to sell the asset
or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most
advantageous market must be accessible by the Company.

The fairvalue of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or
liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic

benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its

highest and best use.

All assets and liabilities forwhich fairvalue is measured ordisclosed in the financial statements are categorized within the fairvalue
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting year.

B Critical Accounting Judgements and Key Sources of Estimation Uncertainty

The Preparation of Company''s financial Statements requires management to make judgements, estimates and assumptions that
affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustments to the carrying amount of assets or liabilities
affected in next financial years.

a. Determination of the estimated useful lives of Property, Plant and Equipment and Intangible Assets:

Estimates are involved in determining the cost attributable to bringing the assets to the location and condition necessary for it to be
capable of operating in the manner intended by the management. Property, Plant and Equipment/Intangible Assets are depreciated/
amortised over their estimated useful life, after taking into account estimated residual value. Management reviews the estimated
useful life and residual values of the assets annually in orderto determine the amount of depreciation/amortisation to be recorded
during any reporting period. The useful life and residual values are based on the Company''s historical experience with similar assets
and take into account anticipated technological changes. The depreciation/ amortisation for further period is revised if there are

b. Recoverability of Trade Receivables:

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against
those receivables is required or not. Factors considered include the credit rating of the counterparty, the amount and timing of
anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

c. Provisions:

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting
from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgements to existing facts and circumstances, which can be subject to
change. The carrying amount of provisions and liabilities are reviewed regularly and revised to take account of changing facts and

d. Recognition Defined benefit plans:

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions
include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to
marketyields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to
the probable maturity of the post-employment benefit obligations.

e. Application of Discount rates:

Estimates of rates of discounting are done for measurement of fair values of certain financial assets and liabilities, which are based on
prevalent bank interest rates and the same are subject to change.

f. Current versus non-current classification:

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve
months and other criteria set out in Schedule III to the Companies Act, 2013.

g. Impairment of financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s
past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

h. Impairment of non-financial assets:

The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s
past history, existing market conditions as well as forward looking estimates at the end of each reporting period. The impairment
provision forof non-financial assets company estimates asset''s recoverable amount, which is higher of an asset''s or Cash Generating
Units (CGU''s) fair value less costs of disposal and its value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account, if no
such transactions can be identified, an appropriate evaluation model is used.

i. Recognition of Deferred Tax Assets and Liabilities:

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is
probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax
that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

j. Recent pronouncements

1 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. For the year ended 31st March, 2025, MCA has notified Ind AS - 117
Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024. The Company has reviewed the new pronouncements 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:

2 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

3 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.

4 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.

11.1 (a) Car Loan from Indian Bank of Rs. 20,00,000/- is secured against hypothecation of Motor car. The Car Loan carries an interest rate
of 8.85% p.a and is repayable in 84 instalments of Rs.32,500/- each

11.1 (b)Car Loan from Indian Bank of Rs. 18.90,000/- is secured against hypothecation of Motor car & Personal Guarantee of Directors.
The Car Loan carries an interest rate of 7.55% p.a and is repayable in 84 instalments of Rs.29,036/- each

11.2 Term Loan from HDFC Bank carries floating interest @ 8% p.a. linked to repo benchmark and is secured against hypothecation of
plant & machinery, stock, book debts and collateral securities including equitable mortgage of immovable properties, corporate
guarantee and personal guarantees of directors. As per sanction terms, the facility has a total tenor of 72 months including moratorium
of 12 months, with repayment in 60 monthly instalments post moratorium.

11.3 Term loan facility rom Indian bank is secured by way of exclusive charge on project fixed assets , including building and plant and
machineries at the Tarapur industrial unit, which also form part of the common collateral security for all facilities.the term loan carries
interest at a rate linked to the Bank''s Benchmark Lending Rate (RBLR) / Repo Linked Lending Rate along with applicable spread, and the
rate of interest is floating in nature.

11.4 All the bank facilities of the Company are secured by common collateral, comprising equitable mortgage of office land and
building at Tarapur Industrial Area, Boisar, exclusive hypothecation of plant and machineries located thereat, and equitable mortgage
of office building at Worli, Mumbai, owned by the Company.

11.5 Unsecured Loans from Directors and are repayable on demand, and the same are interest free in nature. No demand for
repayment has been made during year and hence there is no delay/default in servicing the said loans.

11.6 Working Capital facilities from Indian Bank Including Cash Credit / Overdraft and Packing Credit are secured by exclusive
hypothecation of entire Stocks, Book-Debts and other Current Assets of the company.

^Contingent liabilities include Letter of Credit.

**(1)The Company has received a demand noticefrom Maharashtra Pollution Control Board andTarapur Environmentprotection Society for
Rs. 191.97 Lakhs towards the interim compensation for the damages to the environment. The Company has already deposited 30% of this
amount i .e. Rs. 57.59 Lakhs under protest. The Company has also filed an appeal in Supreme Court against the demand and a stay order has
already been granted.

**(2)Claims against the Company not acknowledged as debt incl ude GST demand aggregating to Rs. 42.43 lakhs pertaining to FY 2019-20. The
Company has filed an appeal before theAppellate Authority against thesaid order and deposited Rs. 2.19 lakhs as a mandatory pre-deposit.
Based on management''s assessment, no provision has been made in the financial statements.

34 Fair value disclosures

34.1 The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

The categories used are as follows:

• Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds, ETFs and mutual funds that
have quoted price. ;

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

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

35 Financial instruments and risk management

35.1 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity
holders of the company. The primary objective of the company''s capital management is to maximise the shareholder value and to safeguard the companies ability to
remain as a going concern.

The company manages its capital structure and makes adjustments to it, in light of changes in economic conditions and the requirements of the financial covenants. To
maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The current
capital structure of the company is equity based and financing through borrowings. The company is not subject to any externally imposed capital requirement.

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

35.2 Financial Risk Management- Objectives And Policies

The company''s activities exposes it to variety of financial risk viz. credit risk, liquidity risk and market risk. The company has various financial assets such as deposits,
Loans & Advances, trade and other receivables and cash and bank balances directly related to their business operations. The Company''s principal financial liabilities
comprise of trade and other payables. The company''s senior management focus is to foresee the unpredictability and minimise the potential adverse effects on the
company''s financial performance. The company''s overall risk, management procedures to minimize the potential adverse effect of the financial market on the
company''s performance are as follows:

35.3 Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is
exposed to credit risk primarily from trade receivables, cash and cash equivalents, and financial assets measured at amortised cost.

A Trade Receivables:

Trade receivables of the Company are generally unsecured. The Company performs ongoing creditevaluations ofits customers'' financial conditionsand monitorsthe
creditworthiness of its customers to which it grants credit terms in the normal course of business through internal evaluation. The allowance for impairment oftrade
receivables is created to the extent and as and when required, based upon the expected collectability of accounts receivables. The Company has no concentration of
credit risk as the customer base is geographically distributed in India.

B Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks.

C Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes Balance with Statutory Authorities, Security deposits and others. Credit risk related to these other financial
assets is managed by monitoring the recoverability of such amounts continuously and is based on the credit worthiness of those parties and balances available at
various government portals.

Provision for expected credit losses

a) Expected credit losses for financial assets other than trade receivables

The Company does not have any expected loss based impairment recognised on such assets considering their low credit risk nature.

b) Expected credit loss for trade receivables under simplified approach

The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach, wherein Company has defined percentage of provision by
analyzing historical trend of default and such provision percentage determined have been considered to recognize life time expected credit losses on trade receivables
(other than those where default criteria are met in which case the full expected loss against the amount recoverable is provided for). Based on such simplified
approach,no allowance has been recognised.

35.4 Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The responsibility for liquidity risk management rests
with the Board of directors, which has an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities by regularly monitoring
forecast and actual cash flows.

(i) Financial arrangements

The Company had access to the following undrawn borrowing facilities at the end of reporting period:

35.5 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. The company is not exposed to other price risk whereas the exposure to currency risk and interest risk is given below:

A Foreign Currency Risk

Foreign currency risk is the risk that the val ue of financial instruments will fl uctuate due to changes in foreign exchange rates. It arises
mainly where receivables and payables exist due to transactions entered in foreign currencies.

A.1 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations
arise. Exchange rate exposures are managed within approved board policy parameters. Quarterly reports are submitted to Board of
Directors on the unhedged foreign currency exposures.

The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the
reporting period are as follows.

36.1 Defined Contribution Plans :

The Company participates in Provident fund as defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to
provident fund represents the value of contributions payable during the period by the Company at rates specified by the rules of provident fund.
(a) Provident fund and pension

In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952, eligible employees of the Company are entitled to
receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions
at a specified percentage of the covered employees'' salary. The contributions, as specified under the law, are made to the provident fund
administered and managed by Government of India (GOI). The Company has no further obligations under the fund managed by the GOI beyond its
monthly contributions which are charged to the statement of Profit and Loss in the period they are incurred. The benefits are paid to employees on
their retirement or resignation from the Company.

Contribution to defined contribution plans, recognised in the Statement of profit and loss for the year under employee benefits expense, are as
under:

Company''s contributions paid/payable during the year to Provident Fund, ESIC, and LabourWelfare Fund recognised in the Statement of Profit &
Loss.

36.2 Defined Benefit Plans :

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum
payment to vested employees at retirement orat death while in employment or on termination of the employment of an amount equivalent to 15
days salary, as applicable, payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company
accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation.

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out forthe year ended 31st March, 2026 by
an independent actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost, were
measured using the projected unit credit method.

The actuarial valuation of gratuity obligation has been carried out for the first time during the year ended 31st March, 2026. Accordingly,
comparative figures for certain actuarial disclosures for the previous year are not available and hence have not been presented.

(K) Sensitivity Analysis

The Sensitivity analysis below has been determined based on reasonably possible change of the respective assumptions occurring at the end of
the reporting period, while holding all otherassumptions constant. These sensitivities show the hypothetical impact of a change in each of the lied
assumptions in isolation. While each of these sensitivities holds all other assumptions constant, in practice such assumptions rarely change in
isolation and the asset value changes may offset the impact to some extent. For presenting the sensitivities, the present value of the Defined
Benefit Obligation has been calculated usingthe projected unit credit method at the end of the reporting period, which is the same as that applied
in calculating the Defined Benefit Obligation presented above. There was no change in the methods and assumptions used inthe preparation of
the Sensitivity Analysis from previous year.

38 Additional regulatory information required by Schedule III of Companies Act,2013

38.1 Details of Benami property:

No proceeding have been initiated orare pending against the Company for holding any Benami property underthe Benami Transaction (Prohibition) Act,1988
(45 of 1988) and the rules made thereunder.

38.2 Utilisation of borrowed funds and share premium:

(a) 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:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries) or

ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.

(b) 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:

i) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate
Beneficiaries) or

ii) provide any guarantee,security or the like or on behalf of the ultimate beneficiaries.

38.3 Compliance with number of layers of companies:

The Company has complied with the number of layers prescribed under the Companies Act,2013.

38.4 Compliance with approved scheme (s) of arrangements:

The Company has not entered into any scheme or arrangement which has an accounting impact on current or previous year.

38.5 Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments underthe Income Tax Act, 1961, that has
not been recorded in the books of account.

38.6 Details of crypto currency or virtual currency:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

38.7 Valuation of Property, Plant and Equipment:

The Company has not revalued its property, plant and equipment (including right-of-use-assets) during the current or previous year.

38.8 Willful Defaulter:

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

38.9 Details of Transaction with Struck of Companies:

There are no Transactions with Struck of Companies during the Current and Previous Year.

39 The Government has notified and brought into force substantial provisions of the Code on Social Security,2020 ("Social Security Code"); the Occupational
Safety, Health and Working Conditions Code,2020; the Industrial Relations Code,2020and the Code on Wages,2019 (collectively, the "LabourCodes") on 21st
November, 2025, which consolidates, subsumes, amends and replaces numerous existing central labour legislations. The Ministry of Labour and Employment
had earlier released draft rules forthe Code on 13th November, 2020. Subsequently, on 21st November, 2025, the Government has notified and brought into
force substantial provisions of the Labour Codes. However, certain specific rules and corresponding State-level notifications are yet to be notified.The
company has provided forthe Employee benefit obligations forthe current quarterand yearended 31st March, 2026 in accordance with Ind AS 19- ''Employee
Benefits'' and FAQs on key accounting implications arising from the New Labour Codes issued by the Institute of Chartered Accountants of India (''ICAI'').

40 The figures for the previous year ended 31st March,2025 were audited by erstwhile auditors and the same has been relied upon.

41 The previous year figures have been regrouped/ reclassified, wherever necessary to confirm to the current year presentation.

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Mar 31, 2025

23. Notes on Financial Statements:

I. Previous year''s figures have been regrouped, rearranged and reclassified wherever necessary.

II. There is no claim against the company not acknowledged as debts.

III. In the opinion of the management there is no such events occurred after the date of balance sheet that needs discloser in these accounts.

IV.	Contingent Liabilities and Commitments
		FY 24-25	FY 23-24
	A. Contingent liabilities and commitments*	176.75	176.75
	B. Claims against the Company not acknowledged as Debts **	191.97	191.97
	C. Estimated amount of contracts remaining to be executed on capital account and not provided for	NIl	NIL
* Contingent liabilities include Letter of Credit.

** The Company has received a demand notice from Maharashtra Pollution Control board and Tarapur Environment protection Society for Rs. 191.97 Lakhs towards the interim compensation for the damages to the environment. The Company has already deposited 30% of this amount i.e. Rs. 57.591 Lakhs under protest. The Company has also filed an appeal in Supreme Court against the demand and a stay order has already been granted.

V. The Income Tax Assessments of the Company have been completed up to Assessment year 2024-25.

VI. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

XI. Segment Information:

The Company is into the business of Bulk Drugs predominantly in India which in the context of Indian Accounting Standards 108 - "Segment Information" represent single reportable business segment. The revenues, total expenses and net profit as per the statement of the profit and loss represents the revenue, total expenses and the net profit of the sole reportable segment.

XIII. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013 read with rules made thereunder and amendments thereof, the Company does not fall into the criteria specified in Section 135(1) during the immediately preceding financial year and hence not liable to make any contribution towards CSR activities for the financial year 2023-2024.

XIV. Other regulatory Information

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

ii. The Company does not have any transactions with companies struck off.

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

iv. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

v. The Company have not advanced or given loan 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

vi. The company have 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 company (Ultimate Beneficiaries) or

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

vii. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Ac, 1961 (such as search or survey or any other relevant provisions of Income Tax Act, 1961).

viii. The Company has not been declared as Willful Defaulter by any Banks, Financial Institutions or Other lenders.

11) Current ratio has reduced due to reduction in inventory and cash and cash equivalents.

12) Debt - Equity ratio has increased due to borrowings taken for expansion project to increase the production capacity.

13) Debt service Coverage ratio has reduced, even though Profit after taxes before Interest & Depreciation has increased, due to increase in debt taken for expansion project to increase the production capacity.

14) Inventory Turnover ratio reduced due reduced purchase resulting in reduced cost of goods sold.

15) Trade receivables Turnover ratio reduced due to increase in trade receivables arising from delay in export receivable.

16) Trade payables Turnover ratio improved due to import payment terms.

17) Net Capital Turnover ratio decreased due to reduction in working capital.

18) Return on Equity reduced due to reduce in Profit after tax.

19) Net Profit ratio reduced due to reduce in Profit after tax.

20) Return on Capital employed reduced due to reduced in earnings after interest and taxes.

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Mar 31, 2024

H. 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 resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are measured at the Company''s best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

Information on contingent liabilities is disclosed in the notes to the consolidated financial statements, unless the possibility of an outflow of resources embodying economic benefits is remote.

I. Contingent Liabilities and Contingent Assets

Contingent Liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

Contingent Assets are neither recognised nor disclosed in the financial statements.

J. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted

earnings per share, the net profit or loss for the period attributable to the equity shareholders, and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

K. Impairment reviews

Ind AS requires management to undertake an annual test for impairment of indefinite lived assets and, for finite lived assets, to test for impairment if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Impairment testing is an area involving management judgment, requiring assessment as to whether the carrying value of assets can be supported by the net present value of future cash flows derived from such assets using cash flow projections which have been discounted at an appropriate rate. In calculating the net present value of the future cash flows, certain assumptions are required to be made in respect of highly uncertain matters including management''s expectations of:

i) growth in Earnings before interest, tax, depreciation and amortization (EBITDA), calculated as adjusted operating profit before depreciation and amortization;

ii) timing and quantum of future capital expenditure;

iii) long-term growth rates; and

iv) selection of discount rates to reflect the risks involved.

Changing the assumptions selected by management, in particular the discount rate and growth rate assumptions used in the cash flow projections, could significantly affect the Company''s impairment evaluation and hence results

Standards issued but not yet effective

Ind AS 115 Revenue from Contract with Customers: MCA issued Ind AS 15, Revenue from Contract with Customers, but subsequently the same has been deferred by a notification dated 30 March 2016. The core principle of the new standard is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers. The Company has evaluated the impact of Ind AS 115 on the financial statements and the same is not material.

M. Capital Management

The company''s objectives when managing capital are to

i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.

N. Balance of Trade Receivables and Trade payable are subject to confirmations.

VI. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

VII. Related Party Disclosures

Related parties where control exists or where significant influence exists and with whom transaction have taken place during the year.

Concern in which a Director is a Director/member

Auro Impex Pvt. Limited Auro Deorah Foundation

Key Management personnel of the Company

Managing Director Mr. Sharat Deorah

XI. Segment Information:

The Company is into the business of Bulk Drugs predominantly in India which in the context of Indian Accounting Standards 108 - “Segment Information" represent single reportable business segment. The revenues, total expenses and net profit as per the statement of the profit and loss represents the revenue, total expenses and the net profit of the sole reportable segment.

XIII. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013 read with rules made thereunder and amendments thereof, the Company does not fall into the criteria specified in Section 135(1) during the immediately preceding financial year and hence not liable to make any contribution towards CSR activities for the financial year 2022-23.

XIV. Other regulatory Information

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

ii. The Company does not have any transactions with companies struck off.

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

iv. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

v. The Company have not advanced or given loan 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

vi. The company have 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 company (Ultimate Beneficiaries) or

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

vii. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Ac, 1961 (such as search or survey or any other relevant provisions of Income Tax Act, 1961).

viii. The Company has not been declared as Willful Defaulter by any Banks, Financial Institutions or Other lenders.

Reasons for Variance (More than 25%):

1) Current ratio has reduced due to reduction in inventory and cash and cash equivalents.

2) Debt - Equity ratio has increased due to borrowings taken for expansion project to increase the production capacity.

3) Debt service Coverage ratio has reduced, even though Profit after taxes before Interest & Depreciation has increased, due to increase in debt taken for expansion project to increase the production capacity.

4) Inventory Turnover ratio reduced due reduced purchase resulting in reduced cost of goods sold.

5) Trade receivables Turnover ratio reduced due to increase in trade receivables arising from delay in export receivable.

6) Trade payables Turnover ratio improved due to import payment terms.

7) Net Capital Turnover ratio increased due to reduction in working capital.

8) Return on Equity improved due to increase in Profit after tax.

9) Net Profit ratio improved due to increase in Profit after tax.

10) Return on Capital employed improved due to increase in earnings after interest and taxes.

In terms of our report attached For and on behalf of the Board of Directors

For Kothari Jain & Associates Auro Laboratories Limited

Chartered Accountants FIRM REG.NO. 113041W

(Sharat Deorah) (Siddhartha Deorah)

(Sunil Kumar Kothari) Managing Director Whole Time Director

Proprietor DIN: 00230784 DIN: 00230796

M. NO. 043842

UDIN: 24043842BKCOLT3151

(Shaan Jain) (Sweta Agarwal)

Place: Mumbai Chief Financial Officer Company Secretary

Date: May 25, 2024

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Mar 31, 2018

A. The following explain the material adjustments made while transition from previous Accounting Standards to Ind AS.

a. Fair value of security deposits:

Under the previous GAAP, interest free security deposits are recorded at transactions value. Under Ind AS, all financial assets are required to be fair valued.

b. Other comprehensive income:

Under Ind AS all items of income and expenses recognised in the period should be included in the profit & loss for the period, unless a Standard requires or permits otherwise.

Items of income and expenses that are not recognised in the statement of profit & loss but are shown in the statement of profit or loss as other comprehensive income includes re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

c. Deferred tax :

Deferred tax impact on the above adjustments.

d. Retained earnings:

Retained earnings as at 1st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

B. Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows:

The Ageing analysis of Account receivables has been considered from the date the invoice falls due:

C. Capital Management

The company’s objectives when managing capital are to

i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity.

D. Balance of Trade Receivables and Trade payable are subject to confirmations

I. SEGMENT INFORMATION_

Based on the guiding principles given in the Accounting Standard 17 on “Segment Reporting” issued by The Institute of Chartered Accountants of India, the Company is a single segment Company engaged in the business of Bulk Drugs.

II. Previous year’s figures have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2015

1. Notes on Financial Statements:

I. CONTINGENT LIABILITIES AND COMMITMENTS 2015 2014

II. A. Contingent liabilities and commitments 22471566 24986627

B. Claims against the Company not acknowledged Nil Nil As debts

C. Estimated amount of contracts remaining to be Nil Nil Executed on capital account and not provided for

2. RELATED PARTY DISCLOSURES

A] Related parties where control exists or where significant influence exists and with whom transaction have taken place during the year.

Associate Company

1. Auro Impex Pvt. Limited

2. Phalguni Enclave Private Limited

Key Management personnel Represented on the board

1. Shri Sharat Deorah - Managing director

2. Shri Siddhartha Deorah - Director

Non Executive/lndependent Directors on the Board

1. Shri Kailash Chandra Bubna

2. Shri Goverdhandas Aggarwal

3. SEGMENT INFORMATION

Based on the guiding principles given in the Accounting Standard 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, the Company is a single segment Company engaged in the business of Bulk Drugs.

4. DEFERRED TAX ASSETS/ LIABILITIES

Considering the past performance and present scenario, the Company does not expect future taxable profits/ no provision has been made for the deferred tax assets/ liabilities as on 31sl March 2015.

5. Previous year's figures have been regrouped, rearranged and reclassified wherever necessary.

6. In accordance with the provision of schedule II of the act, in case of fixed assets which have been completed their useful life as at 1st April 2014, the carrying value amounting to Rs. 1,55,732/- charged to profit & Loss Accounts.

Further In case of assets acquired prior to 1st April 2014, the carrying value of assets is depreciated over the remaining useful life as determined effective 1st April 2014.

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Mar 31, 2014

Note 1: Long-term borrowings

1. Term Loans from Allahabad Banks are secured by mortgage of immovable assets, both present and future.

Notes:

1. The Working Capital facilities from Allahabad bank are secured by Hypothecation of all types of Stock and book debts.

2. There is no default in repayment of loans and interest.

2. Notes on Financial Statements:

I. CONTINGENT LIABILITIES AND COMMITMENTS

A. Contingent liabilities and commitments 24986627 44518561

B. Claims against the Company not acknowledged As debts Nil Nil

C. Estimated amount of contracts remaining to be Executed on capital account and not provided for Nil Nil

II. The Income Tax Assessments of the Company have been completed up to Assessment year 2010-11.

III. RELATED PARTY DISCLOSURES

Related parties where control exists or where significant influence exists and with whom transaction have taken place during the year.

Associate Company

1. Auro Impex limited

2. Phalguni Enclave Private Limited

Key Management personnel Represented on the board

1. Shri Sharath Deorah - Managing director

2. Shri Siddharth Deorah - Director

Non Executive/Independent Directors on the Board

1. Shri Kailash Chandra Bubna

2. Shri Goverdhandas Aggarwal

IV. SEGMENT INFORMATION

Based on the guiding principles given in the Accounting Standard 17 on "Segment Reporting" issued by The Institute of Chartered Accountants of India, the Company is a single segment Company engaged in the business of Bulk Drugs.

V. DEFERRED TAX ASSETS/LIABILITIES

Considering the past performance and present scenario, the Company does not expect future taxable profits/no provision has been made for the deferred tax assets/liabilities as on 31st March 2014.

VI. Previous year''s figures have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2013

I. CONTINGENT LIABILITIES AND COMMITMENTS

2013 2012

A. Contingent liabilities and commitments 44518561 16757714

B. Claims against the Company not acknowledged Nil Nil

As debts

C. Estimated amount of contracts remaining to be Nil Nil

Executed on capital account and not provided for

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Mar 31, 2012

I. CONTINGENT LIABILITIES AND COMMITMENTS 2012 2011

A. Contingent liabilities and commitments Nil Nil

B. ClaimsagainsttheCompanynotacknowledged Nil Nil As debts

C. Estimated amount of contracts remaining to be Nil Nil Executed on capital account and not provided for

II. The Income Tax Assessments ol the Company have been completed up to Assessment year 2009-10.

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Mar 31, 2010

1) Other retirement benefits except Gratuity is accounted on cash basis. Liability for Gratuity as at 31.03.2010 is not ascertained.

2) The Intercorporate Deposits of Rs.17,60,108/- has been classified as doubtful and therefore no provision for interest income has been made on Inter corporate advances & deposits. No provision for doubtful unsecured loans and advances to the tune of Rs. 39,33,684/- has been made, which are considered doubtful.

3) Investment in shares is in the nature of long term Investment. Provision for diminution in the value of shares as at the year-end amounting to Rs. 3,80,872/- (Previous Year Rs. 4,08,398/-) has not been provided for.

4) Contingent Liability;

Arrears of Water charges Rs. 86,464/-

Particulars Amount in Rs Remarks

Arrears of Water 86,464.00 Case pending from

Charges Year 2000

5) Considering the carry forward losses, No provision for Taxation has been made.

6) Balances of the Sundry Debtors, Sundry Creditors and Loans and Advances have been taken as per books pending respective confirmation and reconciliation.

7) In the opinion of the Board of Directors of the Company, the current assets, loans and advances have a value, on realizations in the ordinary course of business, at least equal to the amounts at which they are stated and the provisions for all known liabilities are adequate and are not in excess of the amount reasonably necessary.

8) Process loss /gain on Raw material consumption has not been separately ascertained and adjusted in production.

9) Sales Tax Assessment has been completed up to the accounting year ended 31.3.2002 and the Company does not foresee any liability for the pending years.

10) Income Tax Assessment has been completed up to Assessment Year 2007-08 i.e. Accounting year ended 31.3.2007. The Company does not foresee any liability for the pending years.

11) Earning and outgo in Foreign Currency.

FOB Value of export: Rs. 3,86,42,206/- (Previous Year Rs. 4,05,55,737/-). Foreign traveling expenses: Rs. 8,62,240/- (Previous Year Rs. 6,19,742/-). Plant & Machinery : Rs. Nil/- (Previous Year Rs.Nil)

12) Segment Reporting.

Based on the guiding principles given in the Accounting Standard- 17 on Segment Reporting issued by The Institute of Chartered Accountants of India, the company is a single segment company engaged in the business of Bulk Drugs.

Considering the past performance and present scenario, the company does not expect future taxable profits, no provision has been made for the Deferred Tax Asset as on 31 st March 2010.

13. Related Party Disclosure:

14) The figures of the previous accounting period are re-grouped, re-classified, rearranged wherever necessary and are not comparable with the figure of the current accounting year.

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Mar 31, 2009

1) Other retirement benefits except Gratuity is accounted on cash basis. Liability for Gratuity as at 31.03.2009 is not ascertained.

2) The Inter corporate Deposits of Rs. 17,60,108/- has been classified as doubtful therefore no provision for interest income has been made on Inter corporate advances & deposits. No provision for doubtful unsecured loans and advances to the tune of Rs. 39,33,684/- has been made, which are considered doubtful.

3) Investment in shares is in the nature of long term Investment. Provision for diminution in the value of shares as at the year-end amounting to Rs. 43,819/- (Previous Year Rs. 4,08,398/-) has not been provided for.

4) Contingent Liability;

Arrears of Water charges Rs. 86,464/-

Particulars Amount in Rs Remarks

Arrears of Water 86,464.00 Case pending from Charges Year2000

5) Considering the carry forward losses, No provision for Taxation has been made.

6) Balances of the Sundry Debtors, Sundry Creditors and Loans and Advances have been taken as per books pending respective confirmation and reconciliation.

7) In the opinion of the Board of Directors of the Company, the current assets, loans and advances have a value, on realizations in the ordinary course of business, at least equal to the amounts at which they are stated and the provisions for all ! known liabilities are adequate and are not in excess of the amount reasonably necessary.

8) Process loss /gain on Raw material consumption has not been separately ascertained and adjusted in production.

9) Production during the year includes NIL. (Previous Year 48,663.000 Kgs.) produced for third party on Job work basis.

10) Sales Tax Assessment has been completed upto the accounting year ended 31.3.2002 and the Company does not foresee any liability for the pending years.

11) Income Tax Assessment has been completed upto Assessment Year 2006-07 i.e. Accounting year ended 31.3.2006. The Company does not foresee any liability for the pending years.

12) Earning and outgo in Foreign Currency.

FOB Value of export: Rs. 3,71,53,6121- (Previous Year Rs. 2,99,42,709/-). Foreign traveling expenses: Rs. 6,48,655/- (Previous Year Rs. 6,40,320/-). Plants Machinery : Rs. Nil/-(Previous Year Rs.Nil)

13) Segment Reporting.

Based on the guiding principles given in the Accounting Standard- 17 on Segment Reporting" issued by The Institute of Chartered Accountants of India, the company is a single segment company engaged in the business of Bulk Drugs.

14) The figures of the previous accounting period are re-grouped, re-classified, rearranged wherever necessary and are not comparable with the figure of the current accounting year.