ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Sudeep Pharma Ltd.

Mar 31, 2026

(A) (i) Statement of compliance

The Standalone Financial statements comply
in all material aspects with Indian Accounting
Standards (Ind AS) notified under Section 133 of
the Companies Act, 2013 (the Act) [Companies
(Indian Accounting Standards) Rules, 2015] and
other relevant provisions of the Act.

The Financial Information of the Company
comprise of the Standalone Balance Sheet as at
31st March, 2026, the Standalone Statement of
Profit and Loss (including Other Comprehensive
Income), Standalone Statement of Changes in
Equity and the Standalone Statement of Cash
Flows for the year ended 31st March, 2026 the
summary of material accounting policies and
explanatory notes (collectively, the Standalone
Financial Statements’).

All assets and liabilities have been classified as
current or non-current as per the Company’s
normal operating cycle and other criteria set out
in the Schedule III of the Companies Act 2013.
The Company has ascertained its operating cycle
as 12 months for the purpose of current - non¬
current classification of assets and liabilities

(ii) Basis of preparation and presentation

The Standalone Financial Statements have been
prepared on the historical cost basis, except
for certain financial instruments (investments,
derivative assets) and defined benefit plans which
is netted off from defined benefit obligation, are
measured at fair value at the end of each reporting
period. Historical cost is generally based on the
fair value of the consideration given in exchange
for goods and services. 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 Company adopted Disclosure of Accounting
Policies (Amendments to Ind AS 1) from 1st
April, 2023. Although the amendments did not
result in any changes in the accounting policies
themselves, they impacted the accounting policy
information disclosed in the financial statements.
The amendments require the disclosure of
''material’ rather than ''significant’ accounting
policies. The amendments also provide guidance
on the application of materiality to disclosure
of accounting policies, assisting entities to
provide useful, entity-specific accounting policy
information that users need to understand other
information in the financial statements.

The Company classifies an asset as current asset
when:

- it expects to realise the asset, or intends to
sell or consume it, in its normal operating
cycle;

- it holds the asset primarily for the purpose of
trading;

- it expects to realise the asset within twelve
months after the reporting period; or

- the asset is cash or a cash equivalent unless
the asset is restricted from being exchanged
or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when -

- it expects to realise the asset, or intends to
sell or consume it, in its normal operating
cycle;

- it holds the liability primarily for the purpose
of trading;

- the liability is due to be settled within twelve
months after the reporting period; or

- it does not have an unconditional right
to defer settlement of the liability for at
least twelve months after the reporting
period. Terms of a liability that could,
at the option of the counterparty, result
in its settlement by the issue of equity
instruments do not affect its classification.
All other liabilitiesareclassifiedasnon-current.
The operating cycle is the time between the
acquisition of assets for processing and their

realisation in cash or cash equivalents. The
Company’s normal operating cycle is twelve
months.

(iii) Functional and Presentation Currency

Items included in the Standalone Financial
Statement of the Company are measured using
the currency of the primary economic environment
in which the Company operates (''the functional
currency’). The functional and presentation
currency of the Company is Indian Rupees () in
Lakhs.

All amounts disclosed in the Standalone financial
statements and notes have been rounded off to
the nearest Lakhs, or decimal thereof as per the
requirement of Schedule III, unless otherwise
stated.

(iv) Critical accounting estimates, assumptions and
judgements

The preparation of the Standalone Financial
Statement requires management to make
estimates, assumptions and judgments that affect
the reported balances of assets and liabilities
and disclosures as at the date of the Standalone
financial statements and the reported amounts
of income and expense for the periods presented.
The estimates and associated assumptions
are based on historical experience and other
factors that are considered to be relevant.
Actual results may differ from these estimates
under different assumptions and conditions.
Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimates are revised and future
periods are affected.

(a) Accounting estimates, assumptions and
judgements

The estimates and assumptions that have
a significant risk of causing a material
adjustment to the carrying values of assets
and liabilities within the next financial year
are discussed below.

- Useful lives of property, plant and
equipment (PPE) and intangible assets

Management reviews the estimated
useful lives and residual value of PPE
and Intangible assets at the end of
each reporting period. Factors such as
changes in the expected level of usage,

technological developments, units-
of-production and product life-cycle,
could significantly impact the economic
useful lives and the residual values of
these assets. Consequently, the future
depreciation and amortisation charge
could be revised and may have an
impact on the profit of the future years.

- Provision and contingencies

From time to time, the Company
is subject to legal proceedings, the
ultimate outcome of each being
subject to uncertainties inherent in
litigation. A provision for litigation is
made when it is considered probable
that a payment will be made and the
amount can be reasonably estimated.
Significant judgment is required when
evaluating the provision including, the
probability of an unfavourable outcome
and the ability to make a reasonable
estimate of the amount of potential
loss. Litigation provisions are reviewed
at each accounting period and revisions
made for the changes in facts and
circumstances. Contingent liabilities
are disclosed in the notes forming part
of the Standalone financial statements.
Contingent assets are not disclosed in
the Standalone financial statements
unless an inflow of economic benefits is
probable.

- Deferred income tax assets and
liabilities

Significant management judgment
is required to determine the amount
of deferred tax assets that con be
recognised, based upon the likely timing
and the level of future taxable profits
The amount of total deferred tax assets
could change if management estimates
of projected future taxable income or if
tax regulations undergo a change.
Similarly, the identification of temporary
differences pertaining to subsidiaries
that are expected to reverse in the
foreseeable future and the determination
of the related deferred income tax
liabilities, require the Management to
make material judgments, estimates
and assumptions.

- Employee benefits

Employee benefit obligations are
determined using actuarial valuations.
An actuarial valuation involves
making various assumptions that
may differ from actual developments.
These include the estimation of the
appropriate discount rate, future salary
increases and mortality rates. Due to the
complexities involved in the valuation
and its long-term nature, the employee
benefit obligation is highly sensitive
to changes in these assumptions. All
assumptions are reviewed at each
reporting date.

- Fair value of financial instruments

In determining the fair value of its
financial instruments, the Company
uses a variety of methods and
assumptions that are based on market
conditions and risks existing at each
reporting date. The methods used to
determine fair value include discounted
cash flow analysis, available quoted
market prices and dealer quotes. All
methods of assessing fair value result
in general approximation of value.

(v) Measurement of fair values

A number of the Company’s accounting policies
and disclosures require the measurement of fair
values, for both financial and non-financial assets
and liabilities.

The Company has an established control
framework with respect to the measurement of
fair values. This includes a valuation team that has
overall responsibility for overseeing all significant
fair value measurements, including Level 3 fair
values, and reports directly to the chief financial
officer.

The valuation team regularly reviews significant
unobservable inputs and valuation adjustments.
If third party information, such as broker quotes
or pricing services, is used to measure fair values,
then the valuation team assesses the evidence
obtained from the third parties to support the
conclusion that these valuations meet the
requirements of the Accounting Standards,
including the level in the fair value hierarchy
in which the valuations should be classified.

Significant valuation issues are reported to the
Company’s management.

Fair values are categorised into different levels in
a fair value hierarchy based on the inputs used in
the valuation techniques as follows.

• Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

• Level 2: inputs other than quoted prices
included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

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.

(vi) Foreign currency transactions and balances

On initial recognition, all foreign currency
transactions are recorded at exchange rates
prevailing on the date of the transaction. Monetary
assets and liabilities, denominated in a foreign
currency, are translated at the exchange rate
prevailing on the Balance Sheet date and the
resultant exchange gains or losses are recognised
in the Standalone Statement of Profit and Loss.
Non-monetary items, which are carried in terms of
historical cost, denominated in a foreign currency
are reported using the exchange rate at the date of
the transaction.

Foreign exchange differences regarded as an
adjustment to the borrowing cost are presented
in the Standalone Statement of Profit and Loss
within finance cost. Exchange differences arising
from the translation of equity investments at
Fair value through other comprehensive income
(''FVTOCI’) are recognised in OCI. All other foreign
exchange gains and losses are presented on a net
basis within other income or other expense.

1.1 Revenue from contracts with customers

Revenue from contracts with customers is recognised
at the point in time when control is transferred to
the customer which typically occurs upon dispatch
/ delivery of goods, based on contracts with the
customers

Revenue is measured based on the transaction price,
which is the consideration, adjusted for returns, if
any, as specified in the contract with the customers.
It excludes taxes or other amounts collected from
customers in its capacity as an agent. Due to the short
nature of credit period extended to customers and the
same being consistent with market practice, there is no
financing component in the contract.

Export entitlements are recognised in the Standalone
Statement of profit and loss in the year of exports
provided that there is no significant uncertainty
regarding the entitlement to the credit and the amount
thereof and when there is no significant uncertainty
regarding the ultimate collection of the relevant export
proceeds.

1.2 Other Income

Interest income or expense is recognised using the
effective interest method.

The ''effective interest rate’ is the rate that exactly
discounts estimated future cash payments or receipts
through the expected life of the financial instrument to:

- the gross carrying amount of the financial asset; or

- the amortised cost of the financial liability.
In calculating interest income and expense, the
effective interest rate is applied to the gross
carrying amount of the asset (when the asset
is not credit-impaired) or to the amortised cost
of the liability. However, for financial assets that
have become credit-impaired subsequent to
initial recognition, interest income is calculated
by applying the effective interest rate to the
amortised cost of the financial asset.

Insurance claims are accounted for based on
claims submitted and to the extent that there is no
uncertainty in receiving the claims.

1.3 Property Plant and Equipment and Intangible Assets

An item of property, plant and equipment (''PPE’) is
recognised as an asset if it is probable that the future
economic benefits associated with the item will flow
to the Company and its cost can be measured reliably.
These recognition principles are applied to the costs
incurred initially to acquire an item of PPE, to the pre-

operative and trial run costs incurred (net of sales),
if any and also to the costs incurred subsequently to
add to, replace part of, or service it and subsequently
carried at cost less accumulated depreciation and
accumulated impairment losses, if any.

Cost of an item of property, plant and equipment
comprises its purchase price, including import duties
and non-refundable purchase taxes, after deducting
trade discounts and rebates, any directly attributable
cost of bringing the item to its working condition for its
intended use and estimated costs of dismantling and
removing the item and restoring the site on which it is
located.

The cost of a self-constructed item of property, plant
and equipment comprises the cost of materials and
direct labour, any other costs directly attributable to
bringing the item to working condition for its intended
use, and estimated costs of dismantling and removing
the item and restoring the site on which it is located.

If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components)
of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant
and equipment is recognised in Standalone Statement
of profit and loss.

The cost of property, plant and equipment at 1st April,
2022, the Company’s date of transition to Ind AS,
was determined with reference to its carrying value
recognised as per the previous GAAP (deemed cost), as
at the date of transition to Ind AS.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and the
cost of the item can be measured reliably

Depreciation:

Depreciation on PPE is calculated using the straight¬
line method to allocate their cost, net of their residual
values, over their estimated useful lives. Freehold land
is not depreciated.

Depreciation is provided on the cost of the PPE less
their residual value (5%), using straight line method
over the useful life of PPE and intangible asset. The
estimated useful life is as per the prescribed life as per
Part C of Schedule II of the Companies Act 2013

Ammortisation:

Depreciation is provided on the cost of the intangible
assets, using Straight Line Method over the useful life
of intangible assets prescribed by Schedule II of the
Companies Act, 2013 except cases where useful life
of assets are determined by the Management based
on technical assessments carried out, which suggests
a life different from those prescribed by Schedule II-
Part ''C’. The estimated useful life of the assets are as
follows.

1.4 Capital work in progress

Projects under commissioning and other CWIP are
carried at cost, comprising direct cost, related incidental
expenses and attributable borrowing cost.

Subsequent expenditures relating to property, plant
and equipment ore capitalised only when it is probable
that future economic benefit associated with these will
flow to the Company and the cost of the item con be
measured reliably.

Advances given to acquire property, plant and
equipment ore recorded as non-current assets and
subsequently transferred to CWIP on acquisition of
related assets.

1.5 Intangible Assets

Computer software, are initially recognised at cost.
Following initial recognition, intangible assets are
carried at cost less accumulated amortisation and
accumulated impairment losses, if any.

If significant parts of an item of intangible assets have
different useful lives, then they are accounted for as
separate items (major components) of intangible
assets

Any gain or loss on disposal of an item of intangible
assets is recognised in Standalone Statment of profit
and loss.

The cost of intangible assets at 1st April, 2022, the
Company’s date of transition to Ind AS, was determined
with reference to its carrying value recognised as per
the previous GAAP (deemed cost), as at the date of
transition to Ind AS.

Subsequent expenditure

Subsequent expenditure is capitalised only if it is
probable that the future economic benefits associated
with the expenditure will flow to the Company and the
cost of the item can be measured reliably.

1.5.1 Internally generated intangible asset

Product development costs incurred are
recognised as intangible assets, when
feasibility has been established, the Company
has committed technical, financial and other
resources to complete the development and it
is probable that asset will generate probable
future economic benefits. The costs capitalised
include the cost of materials, direct labour
and directly attributable expenditure incurred
up to the date the asset is available for use.

Product development expenditure is measured
at cost less accumulated amortisation and
impairment, if any.

1.6 Impairment of Assets

Non-derivative financial assets

Financial instruments and contract assets

The Company recognises loss allowances for ECLs

(Expected credit loss) on:

• financial assets measured at amortised cost;

The Company measures loss allowances at an
amount equal to lifetime ECLs. Loss allowances
for trade receivables, other financial assets and
loans, if any, are always measured at an amount
equal to lifetime ECLs. Lifetime expected credit
losses are the expected credit losses that result
from all possible default events over the expected
life of a financial instrument.

12-month expected credit losses are the portion
of expected credit losses that result from default
events that are possible within 12 months after the
reporting date (or a shorter period if the expected
life of the instrument is less than 12 months).
In all cases, the maximum period considered when

estimating expected credit losses is the maximum
contractual period over which the Company is
exposed to credit risk.

When determining whether the credit risk of a
financial asset has increased significantly since
initial recognition and when estimating ECLs, the
Company considers reasonable and supportable
information that is relevant and available
without undue cost or effort. This includes both
quantitative and qualitative information and
analysis, based on the Company’s historical
experience and informed credit assessment,
that includes forward-looking information.
The Company assumes that the credit risk on a
financial asset has increased significantly if it is
more than 180 days past due.

When determining whether the credit risk of a
financial asset has increased significantly since
initial recognition and when estimating ECLs, the
Company considers reasonable and supportable
information that is relevant and available
without undue cost or effort. This includes both
quantitative and qualitative information and
analysis, based on the Company’s historical
experience and informed credit assessment,
that includes forward-looking information.
The Company assumes that the credit risk on
a financial asset has increased significantly
if it is more than 180 days past due.
The Company considers a financial asset to be in
default when:

• the debtor is unlikely to pay its credit
obligations to the Company in full, without
recourse by the Company to actions such as
realising security (if any is held); or

• the financial asset is more than 180 days
past due.

Measurement of ECLs

ECLs are a probability-weighted estimate of
credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the
difference between the cash flows due to the
entity in accordance with the contract and
the cash flows that the Company expects to
receive).

ECLs are discounted at the effective interest
rate of the financial asset.

Presentation of allowance for ECL in the
balance sheet Loss allowances for financial
assets measured at amortised cost are
deducted from the gross carrying amount of
the assets.

Write-off

The gross carrying amount of a financial
asset is written off when the Company has
no reasonable expectations of recovering
a financial asset in its entirety or a portion
thereof.

Impairment of non-financial assets

At each reporting date, the Company reviews
the carrying amounts of its non-financial
assets (other than inventories and deferred
tax assets) to determine whether there is
any indication of impairment. If any such
indication exists, then the asset’s recoverable
amount is estimated.

For 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 CGUs (Cash
Generating Units).

The recoverable amount of an individual
asset or CGU is the greater of its value in use
and its fair value less costs of disposal. Value
in use is based on the estimated future cash
flows, 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 or
CGU.

An impairment loss is recognised if the
carrying amount of an asset or CGU exceeds
its recoverable amount.

Impairment losses are recognised in
Standalone statement of profit and loss.
They are allocated to reduce the carrying
amounts of the other assets in the CGU on a
pro rata basis.

1.7 Investments

Investments that are readily realisable and intended
to be held for not more than a year from the date of
acquisition are classified as current investments.
All other investments are classified as non current

investments Current investments are measured at fair
value through Standalone Statement of Profit and Loss
(FVTPL). Non current investments are carried at cost
less any other-than-temporary diminution in value,
determined separately for each individual investment.

1.8 Inventories

Inventories which comprise raw materials, packing
materials, work-in-progress, finished goods, stores and
spares are carried at the lower of cost and net realisable
value.

Cost of inventories comprises all costs of purchase,
costs of conversion and other costs incurred in bringing
the inventories to their present location and condition.
In determining the cost, First-In-First-Out (FIFO) cost
method in used. Finished goods progress include
appropriate proportion of costs of conversion. Fixed
production overheads are allocated on the basis of
normal capacity of production facilities. Valuation of
work-in-progress is based on FIFO valuation of raw
material used in the process and no cost of conversion
are allocated.

Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs
of completion and the estimated costs necessary to
make the sale.

The net realisable value of work-in-progress is
determined with reference to the selling prices of related
finished products. Raw materials and other supplies
held for use in the production of finished products are
not written down below cost except in cases where
material prices have declined and it is estimated that
the cost of the finished products will exceed their
net realisable value. The comparison of cost and net
realisable value is made on an item-by-item basis.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash on hand,
deposits held at call with financial institutions, other
short-term, highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

1.10 Borrowing Costs

Borrowing costs are interest and ancillary costs incurred
in connection with the arrangement of borrowings.
General and specific borrowing costs attributable to
acquisition and construction of qualifying assets is
added to the cost of the assets upto the date the asset
is ready for its intended use. Capitalisation of borrowing
costs is suspended and charged to the Standalone

Statement of Profit and Loss during extended periods
when active development activity on the qualifying
assets is interrupted. All other borrowing costs are
recognised in the Standalone Statement of Profit and
Loss in the period in which they are incurred.

1.11 Employee BenefitsDefined contribution plan:

A defined contribution plan is a post-employment
benefit plan where the Company’s legal or constructive
obligation is limited to the amount that it contributes to
a separate legal entity.

The Company makes specified monthly contributions
towards Government administered provident fund
scheme.

Obligations for contributions to defined contribution
plan are expensed as an employee benefits expense in
the Standalone statement of profit and loss in period in
which the related service is provided by the employee.
Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in future
payments is available."

Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan
other than a defined contribution plan. The Company’s
net obligation in respect of defined benefit plans is
calculated separately for each plan by estimating the
amount of future benefit that employees have earned in
the current and prior periods, discounting that amount
and deducting the fair value of any plan assets.

Benefit Plans in respect of Gratuity are recognised
based on the present value of defined benefit obligation,
which is computed on the basis of actuarial valuation
using the Projected Unit Cost Method. Liability in
excess of respective plan asset is recognised during
the year. Provision for Gratuity is funded with a Gratuity
Fund administered by the trustees.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling (if any), are
recognised immediately in the Balance Sheet with a
corresponding charge or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to the Standalone
Statement of Profit and Loss in subsequent periods.
Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in the
Standalone Statement Profit and Loss as past service
cost.

- Short Term Employee Benefits

Short-term employee benefits are measured on an
undiscounted basis and expensed as the related
service is provided. A liability is recognised for
the amount expected to be paid under short-term
cash bonus, if the Company has a present legal
or constructive obligation to pay this amount as
a result of past service provided by the employee
and the obligation can be estimated reliably.