Notes to Accounts of Vimta Labs Ltd.

Mar 31, 2025

2.8 Provisions and contingent liabilities

Provisions are recognized when there is a present
obligation 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 there is a reliable estimate of the amount of
the obligation. Provisions are measured at the best
estimate of the expenditure required to settle the
present obligation at the year end.

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.

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 liabilities and assets are not recognised in
financial statements. A disclosure of the contingent
liability is made when there is a possible or a present
obligation that may, but probably will not, require an
outflow of resources.

2.9 Revenue Recognition
Rendering of services

The Company primarily earns revenue from Contract
research and testing services.

Revenue is recognised upon transfer of control of
promised services to customers in an amount that
reflects the consideration the Company expect to
receive in exchange for those services.

Revenue from providing services is recognised in
the accounting period in which such services are
rendered.

At contract inception, the Company assesses its
promise to transfer services to a customer to identify
separate performance obligations. The Company
applies judgment to determine whether each service
promised to a customer is capable of being distinct,
and are distinct in the context of the contract, if not,
the promised services are combined and accounted
as a single performance obligation. The Company
allocates the arrangement consideration to separately
identifiable performance obligation based on their
relative stand-alone selling price or residual method.

In case of fixed-price contracts, the customer pays
the fixed amount based on a payment schedule.
If the services rendered by the Company exceed
the payment, a contract asset is recognised. If the
payments exceed the services rendered, a contract
liability is recognised.

Revenues in excess/short of invoicing are classified as
assets/liabilities, as the case may be.

Export incentives

Export incentives are recognised when the right
to receive the credit is established in respect of
the exports made and where there is no significant
uncertainty regarding the ultimate collection of the
relevant export proceeds and utilization of export
incentives within its validity period.

Interest

Interest income is recognised when it is probable
that the economic benefits will flow to the Company
and the amount of income can be measured reliably.
Interest income is accrued on a time basis, by
reference to the principle outstanding and at the
effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that
asset''s gross carrying amount on initial recognition.
Interest income is included in other income in the
Statement of Profit and Loss.

Service Concession Arrangements

The Company constructs or upgrades infrastructure
(construction or upgrade services) used to provide
a public service and operates and maintains that
infrastructure (operation services) for a specified
period of time. These arrangements may include

Infrastructure used in a public-to-private service
concession arrangement for its entire useful life.

Under Appendix C to Ind AS 115 - Service Concession
Arrangements, these arrangements are accounted
for based on the nature of the consideration. The
intangible asset model is used to the extent that the
operator receives a right (i.e. a concessionaire) to
charge users of the public service.

The financial model is used when the operator has
an unconditional contractual right to receive cash
or other financial assets from or at the direction of
the grantor for the construction service. When the
unconditional right to receive cash covers only part of
the service, the two models are combined to account
separately for each component. If the operator
performs more than one service (i.e. construction,
upgrade services and operation services) under
a single contract or arrangement, consideration
received or receivable is allocated by reference to the
relative fair values of the service delivered, when the
amount are not separately identifiable.

The intangible asset is amortised over the shorter
of the estimated period of future economic benefits
which the intangible assets are expected to generate
or the concession period, from the date they are
available for use.

An asset carried under concession arrangements is
derecognised on disposal or when no future economic
benefits are expected from its future use or disposal.

The Company recognises a financial asset to the
extent that it has an unconditional right to receive
cash or another financial asset from or at the direction
of the grantor. In case of annuity based carriageways,
the Company recognises financial asset.

2.10 Government grants

Grants from the government are recognized at their
fair value where there is a reasonable assurance
that the grant will be received and the Company will
comply with all attached conditions.

Government grants relating to income are deferred
and recognized in the Statement of Profit and Loss
over the period necessary to match them with the
costs that they are intended to compensate and
presented within other income.

Government grants relating to the purchase of
property, plant and equipment are included in non¬
current liabilities as deferred income and are credited
to the Statement of Profit and Loss on a straight-line
basis over the expected lives of the related assets and
presented within other income.

2.11 Foreign Currency Transactions

(a) Functional and presentation currency

Items included in the financial statements are
measured using the currency of the primary
economic environment in which the entity operates
(''the functional currency''). The financial statements
are presented in Indian rupee (INR), which is the
Company''s functional and presentation currency.

(b) Transactions and balances

On initial recognition, all foreign currency transactions
are recorded by applying to the foreign currency
amount the exchange rate between the functional
currency and the foreign currency at the date of the
transaction. Gains/Losses arising out of fluctuation in
foreign exchange rate between the transaction date
and settlement date are recognised in the Statement
of Profit and Loss.

All monetary assets and liabilities in foreign currencies
are restated at the year end at the exchange
rate prevailing at the year end and the exchange
differences are recognised in the Statement of Profit
and Loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

2.12 Retirement and other Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the year in
which the employees render the related service are
recognized in respect of employees'' services up to
the end of the year and are measured at the amounts
expected to be paid when the liabilities are settled.
The liabilities are presented as current employee
benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

Provident Fund: Contribution towards provident
fund is made to the regulatory authorities, where the
Company has no further obligations. Such benefits
are classified as Defined Contribution Schemes as
the Company does not carry any further obligations,
apart from the contributions made on a monthly
basis which are charged to the Statement of Profit
and Loss.

Employee''s State Insurance Scheme: Contribution
towards employees'' state insurance scheme is made

to the regulatory authorities, where the Company has
no further obligations. Such benefits are classified as
Defined Contribution Schemes as the Company does
not carry any further obligations, apart from the
contributions made on a monthly basis which are
charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

The Company has gratuity as defined benefit plan
where the amount that an employee will receive on
retirement is defined by reference to the employee''s
length of service and final salary. The Company has
subscribed to gratuity scheme of Life Insurance
Corporation of India (''LIC'') to which the Company
makes periodic Funding. Under the said policy, the
eligible employees are entitled for gratuity upon their
resignation, retirement, incapitation, termination or
in the event of death in lump sum after deduction
of necessary taxes, as applicable. The liability in
respect of defined benefit plans is calculated using
the projected unit credit method consistent with
the advice of qualified actuaries. The present value
of the defined benefit obligation is determined by
discounting the estimated future cash outflows
using interest rates of high quality corporate bonds
that are denominated in the currency in which the
benefits will be paid, and that have terms of maturity
approximating to the terms of the related defined
benefit obligation.

The current service cost of the defined benefit plan,
recognised in the statement of profit and loss under
employee benefit expense, reflects the increase
in the defined benefit obligation resulting from
employee service in the current year, benefit changes,
curtailments and settlements.

Past Service costs are recognised in statement of
profit and loss in the period of plan amendment.
The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and fair value of plan assets. The
cost is included in the employee benefit expenses
in the statement of profit and loss. Actuarial gains
and losses arising from experience adjustments
and changes in actuarial assumptions are charged
or credited to other comprehensive income in the
period in which they arise.

Compensated Absences (Leave Encashment): The
Company''s current policy permits employees to
accumulate and carry forward a portion of their
unutilised compensated absences and utilise/
encash them in future periods in accordance with
the terms of such policies. The Company measures
the expected cost of accumulated absences as the
additional amount that the Company incurs as a result

of the unused entitlements that has accumulated at
the balance sheet date and charge to Statement of
Profit and loss. The Company''s liability is actuarially
determined (using the Projected Unit Credit method)
at the end of each year. Such measurement is based
on actuarial valuation at the balance sheet date
carried out by a qualified actuary. Actuarial losses/
gains are recognized in the statement of profit and
loss in the year in which they arise.

(c) Share-based payment arrangements

The stock options granted to employees in terms of
the Employee Stock Options Schemes, are measured
at the fair value of the options at the grant date. The
fair value of the options is treated as discount and
accounted as employee compensation cost over the
vesting period on a straight-line basis. The amount
recognised as expense in each year is arrived at
based on the number of grants expected to vest. If a
grant lapses after the vesting period, the cumulative
discount recognised as expense in respect of such
grant is transferred to the general reserve within
equity.

2.13 Leases (as a lessee)

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle
and remove the underlying asset or to restore the
underlying asset or the site on which it is located, less
any lease incentives received.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of
the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as
those of property, plant and equipment. In addition,
the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain re¬
measurements of the lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot
be readily determined, Company''s incremental
borrowing rate. Generally, the Company uses its
incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the
lease liability comprise the following: -

• Fixed payments, including in-substance fixed
payments;

• Variable lease payments that depend on an index
or a rate, initially measured using the index or
rate as at the commencement date;

• Amounts expected to be payable under a
residual value guarantee; and

• The exercise price under a purchase option that
the Company is reasonably certain to exercise,
lease payments in an optional renewal period if
the Company is reasonably certain to exercise
an extension option, and penalties for early
termination of a lease unless the Company is
reasonably certain not to terminate early.

The lease liability is measured at amortised cost using
the effective interest method. It is remeasured when
there is a change in future lease payments arising
from a change in an index or rate, if there is a change
in the Company''s estimate of the amount expected
to be payable under a residual value guarantee, or if
Company changes its assessment of whether it will
exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way,
a corresponding adjustment is made to the carrying
amount of the right-of-use asset, or is recorded in the
Statement of Profit and Loss if the carrying amount of
the right-of-use asset has been reduced to zero.

The Company presents right-of-use assets that do
not meet the definition of investment property in
''property, plant and equipment'' and lease liabilities
in ''loans and borrowings'' in the statement of financial
position.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-
use assets and lease liabilities for short term leases
of real estate properties that have a lease term of 12
months. The Company recognises the lease payments
associated with these leases as an expense on a
straight-line basis over the lease term.

2.14 Borrowing Costs

Borrowing costs consist of interest, ancillary costs
and other costs in connection with the borrowing of
funds and exchange differences arising from foreign
currency borrowings to the extent they are regarded
as an adjustment to interest costs.

Borrowing costs attributable to acquisition and/
or construction of qualifying assets are capitalised
as a part of the cost of such asset, up to the date
such assets are ready for their intended use. Other
borrowing costs are charged to the Statement of
Profit and Loss.

2.15 Earnings Per Share

Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year. Earnings
considered in ascertaining the Company''s earnings
per share is the net profit or loss for the year after
deducting preference dividends and any attributable
tax thereto for the year. The weighted average number
of equity shares outstanding during the year and for
all the years presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares, that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

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

2.16 Dividend Distribution

The Company recognizes a liability to make the
payment of dividend to owners of equity, when
the distribution is authorised and the distribution
is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders.
A corresponding amount is recognised directly in
equity.

2.17 Cash Flows

Cash flows are reported using the indirect method,
whereby profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or
accruals of past or future operating cash receipts or
payment and items of income or expenses associated
with investing or financing cash flows. The cash flows
from operating, investing and financing activities of
the Company are segregated.

2.18 Segment Reporting

The management has assessed and identified
the reportable segments in accordance with the
requirements of Ind AS 108 ''Operating Segment''
and the Company has only one reportable segment
namely "Contract Research and Testing Services"

2.19 Cash and cash equivalents

Cash and cash equivalents in the balance sheet
comprise cash at banks, cash on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

2.20 Prior Period Items

Material prior period errors are corrected
retrospectively by restating the comparative amounts
for prior period presented in which the error occurred
or if the error occurred before the earliest period
presented, by restating the opening statement of
financial position.

3. Significant accounting judgments, estimates and
assumptions

The preparation of financial statements requires
management to make judgments, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in
future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the year end
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based assumptions and
estimates on parameters available when the financial
statements were prepared. Existing circumstances and
assumptions about future developments, however,
may change due to market changes or circumstances
arising that are beyond the control of the Company.
Such changes are reflected in the assumptions when
they occur.

(a) Leases

The Company determines the lease term as the
non-cancellable term of the lease, together with
any periods covered by an option to extend the
lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.
The Company applies judgement in evaluating
whether it is reasonably certain whether or not to
exercise the option to renew or terminate the lease.
That is, it considers all relevant factors that create
an economic incentive for it to exercise either the
renewal or termination. After the commencement
date, the Company reassesses the lease term if there
is a significant event or change in circumstances
that is within its control and affects its ability to
exercise or not to exercise the option to renew or to
terminate (e.g., construction of significant leasehold
improvements or significant customisation to the
leased asset).

(b) Deferred Taxes

The assessment of the probability of future taxable
profit in which deferred tax assets can be utilised is
based on the Company''s latest approved forecast,
which is adjusted for significant non-taxable profit and
expenses and specific limits to the use of any unused
tax loss or credit. The tax rules in the jurisdiction in
which the Company operates are also carefully taken
into consideration. If a positive forecast of taxable
profit indicates the probable use of a deferred tax
asset, especially when it can be utilised without a time
limit, that deferred tax asset is usually recognised in
full.

(c) Defined benefit plans (gratuity benefits and leave
encashment)

The cost of the defined benefit plans such as gratuity
and leave encashment are determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future due to changing market
and economic conditions, regulatory events, judicial
rulings, higher or lower withdrawal rates, or longer or
shorter participant life spans.

The assumptions include determination of the
discount rate, salary growth rate, mortality rate,
retirement age and attrition rate. Due to the
complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each year end."

(d) Fair value of financial instruments

Management uses valuation techniques in measuring
the fair value of financial instruments where active
market quotes are not available. In applying the
valuation techniques, management makes maximum
use of market inputs and uses estimates and
assumptions that are, as far as possible, consistent
with observable data that market participants would
use in pricing the instrument. Where applicable data
is not observable, management uses its best estimate
about the assumptions that market participants
would make. These estimates may vary from the
actual prices that would be achieved in an arm''s
length transaction at the reporting date.

(e) Impairment of financial assets

The impairment provisions of financial assets are
based on assumptions about risk of default and
expected loss rates. the Company uses judgment 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.

(f) Impairment of non-financial assets

An impairment loss is recognised for the amount by
which an asset''s or cash-generating unit''s carrying
amount exceeds its recoverable amount to determine
the recoverable amount, management estimates
expected future cash flows from each asset or cash
generating unit and determines a suitable interest rate
in order to calculate the present value of those cash
flows. In the process of measuring expected future
cash flows, management makes assumptions about
future operating results. These assumptions relate to
future events and circumstances. The actual results
may vary, and may cause significant adjustments to
the Company''s assets.

In most cases, determining the applicable discount
rate involves estimating the appropriate adjustment
to market risk and the appropriate adjustment to
asset-specific risk factors."

(g) Research and Developments Costs

Management monitors progress of internal research
and development projects by using a project
management system. Significant judgment is required
in distinguishing research from the development
phase. Development costs are recognised as an
asset when all the criteria are met, whereas research
costs are expensed as incurred. Management also
monitors whether the recognition requirements
for development costs continue to be met. This
is necessary due to inherent uncertainty in the
economic success of any product development.

(h) Property, Plant and Equipment

Depreciation methods, useful lives and residual
values are reviewed at each financial year end and
adjusted prospectively, as appropriate.

(i) Current income taxes

Significant judgments are involved in determining
the provision for income taxes including judgment
on whether tax positions are probable of being
sustained in tax assessments. A tax assessment can
involve complex issues, which can only be resolved
over extended time periods. The recognition of taxes
that are subject to certain legal or economic limits or
uncertainties is assessed individually by management
based on the specific facts and circumstances.

(j) Provision for expected credit losses (ECL) of trade
receivables and contract assets

The Company uses a provision matrix to calculate
ECLs for trade receivables and contract assets. The
provision rates are based on days past due across
all divisions. The provision matrix is initially based
on the Company''s historical observed default rates.

The Company will calibrate the matrix to adjust the
historical credit loss experience with forward-looking
information. At every reporting date, the historical
observed default rates are updated and changes
in the forward-looking estimates are analysed. The
assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of ECLs
is sensitive to changes in circumstances and of forecast
economic conditions. The Company''s historical credit
loss experience and forecast of economic conditions
may also not be representative of customer''s actual
default in the future.

(k) Significant judgements

In the process of applying the Company''s accounting
policies, the management has made the following
judgements, which have the most significant effect on
the amounts recognized in the financial statements

Determination of applicability of Appendix C of
Service Concession Arrangement (''SCA''), under Ind
AS - 115 ''Revenue from contracts with customers''

The Company, has entered into concession agreement
with Food Safety and Standards Authority of India
(''FSSAI'') to setup, operate and transfer (SOT) a National
food Testing Laboratory (NFL) in JNPT,Mumbai. The
management of the Company conducted detailed

analysis to determine applicability of SCA. The
concession agreements of these entities, have
significant non-regulated revenues, this arrangement
has been considered as a "Service Concessionaire
Arrangement" (SCA) and accordingly, revenue and
costs are allocatable between those relating to lab
setup services and those relating to operation and
maintenance services. Further, the Company has
acquired the right to charge the customer for the
services to be rendered which has been assessed as
an intangible asset.

4. Standards (including amendments) issued but not yet
effective

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 March 31, 2025,
MCA has issued a notification on August 12, 2024 issuing
a new Ind AS -117 "Insurance Contracts" for accounting
of Insurance contracts by replacing current Ind AS 104
"Insurance Contracts". Additionally amendments have
been made to Ind AS 101, Ind AS 103, Ind AS 105, Ind AS
107, Ind AS 109, Ind AS 115 to align them with Ind AS 117,
These amendments are applicable from August 12, 2024.
However, there is no impact of these amendments on the
company."

Note:

(a) Terms and conditions of secured rupee term loans and
nature of security

1. i) The working capital term loan from Axis Bank

included in the Rupee Term loan aggregating to R Nil
as at March 31, 2025 (Previous Year R 7.30 Million)
(Sanctioned limit of R 23.90 Million in FY 2020-21)
under emergency Credit Line Guarantee Scheme
is secured by extension of charge (second charge)
on existing primary and collateral security and
guaranteed by NCGTC.

ii) The above mentioned working capital term loan
carries interest at the rate of 9.25% fixed {Prev
Year 9.25%} and is repayable in 36 equal monthly
installments commencing from March, 2022.

2. i) The Rupee term loan from Axis Bank aggregating to

R 8.37 Million as at March 31,2025 (Previous year
40.31 Millions) Sanctioned limit of R 262.50 Million in
FY 2023-24 is secured by way of first charge on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and
future) of the company.

ii) The above mentioned rupee term loan carries interest
at the rate of 8% (Linked to REPO) and is repayable in
16 quarterly instalments with a 6 months moratorium
period from the date of first disbursement.

3. i) The Rupee Term Loan from Axis Bank aggregating to

R 25.00 Millions as on 31.03.2025 (Sanctioned limit
of R 25.00 Millions in FY 2024-25) is secured by way
of 1st charge on assets created out of term loan This
loan is also secured by second charge on Cuirrent
Assets (both present and future) of the Company.

ii) The above mentioned rupee term loan carries interest
of 9.00 % (Linked to REPO) and is repayable in 16
qurterly instalments with 12 months moratorium
period from the date of 1^st disbursement."

(b) Terms and conditions of secured foreign currency term
loans and nature of security

1. The foreign currency term loan availed from Axis
Bank taken for General Capex aggregating to
R 22.12 Million (equivalent to USD 0.2585 Million) as
at March 31, 2025 (Sanctioned limit of R 75.00 Million
in FY 2020-21 and subsequently converted into FCTL
of USD 1.034 Million) (Previous Year R 38.81 Million)
is secured by way of first charge to bank on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and

future) of the company at pari passu basis with HDFC
Bank Ltd. The loan is covered by collateral security
by way of equitable mortgage of property bearing
Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally,
Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan
carries interest at 12 Months SOFR 275 bps plus
1% per annum (mark up fee upfront) and repayable
in 20 equal quarterly installments commencing from
March 2022.

2. The foreign currency term loan availed from Axis
Bank taken for E&E Project aggregating to R 29.64
Million(equivalent to USD 0.3463 Million) as at March
31, 2025 (sanctioned limit of R 150.00 Million in FY
2020-21 and subsequently converted into FCTL of
USD 1.1775 Million) (Previous Year R 51.97 Million)
secured by way of first charge to bank on assets
created out of Term Loan. This loan is also secured by
Second Charge on Current Assets (both present and
future) of the company at pari passu basis with HDFC
Bank Ltd. The loan is covered by collateral security
by way of equitable mortgage of property bearing
Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally,
Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan
carries interest at 12 Months SOFR 275 bps plus 1%
per annum(markup fee upfront) and repayable in
20 quarterly installments commencing from March,
2022.

(c) Unsecured loans from NBFC:

1. The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March 31,
2025 (Sanctioned limit of R 8.67 Million in FY 2019¬
20) carries at NIL interest and is repayable in 20
quarterly installments commencing from September,

2019. (Previous Year R 0.32 Million)

2) The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March 31,
2025 (Sanctioned limit of R 9.69 Million in FY 2019¬
20) carries at NIL interest and is repayable in 20
quarterly installments commencing from January,

2020. (Previous Year R 1.01 Million)

3) The rupee term loan from Cisco Systems Capital India
Private Limited amounting to R Nil as at March, 31,
2025 (Sanctioned limit of R 4.54 Million in FY 2020-21)
carries an interest at the rate of 5.00% as at March
31, 2024 and is repayable in 20 quarterly installments
commencing from September, 2019. (Previous Year
R 0.73 Million)

(e) Details of working capital limits from banks:

1. The working capital facility from Axis bank amounting to ^ Nil as at March 31, 2025 (sanctioned limit ^ 150 Million) carries
an interest of 3 months MCLR and is secured by way of first paripassu charge on entire current assets of the company
(both present and future) along with HDFC Bank ltd.

2. The working capital facility from HDFC bank amounting to ^ Nil as at March 31, 2025 (sanctioned limit ^ 150 Million)
carries an interest of REPO rate plus spread of 3%and is secured by way of first paripassu charge on entire current assets
of the company(both present and future) along with Axis bank ltd.

3. First paripassu charge to HDFC bank on Industrial land and building situated at Plot No 141/2 and 142, IDA, Phase -II,
Cherlapally, Hyderabad- 500051 as collateral security.

4. The working capital facility from HDFC bank amounting to ^ Nil as at March 31, 2025 (Sanctioned limit ^ 9 Million)
carries an interest of 3 Months T Bill plus spread of 2.12% and is secured by way of primary charge on book debts and
fixed deposits of the company and this working capital facility is closed during the year and No Due Certificate has been
received from the bank before March 31, 2025.

(f) There were no defaults as on current balance sheet date and previous year In repayment of all the above borrowings and
interest thereon

(g) The company has used the borrowings from Banks and Financial Institutions for the specific purpose for which it was taken at
the Balance sheet date.

(h) Company''s borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the
company with Banks are in agreement with the books of account.

(i) Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender.

(j) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period in respect of the
above borrowings.

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables,
cash and cash equivalents and other bank balances that derive directly from its operations.

The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair
values, due to their short-term nature. The difference between carrying amounts and fair values of bank deposits, other financial
assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years
presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value. For financial assets
measured at fair values, the carrying amounts are equal to the fair values.

32 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risks, credit risks and liquidity risks. The
Company''s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance.
The Company''s risk management assessment and policies and processes are established to identify and analyse the risks
faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk
assessment and management policies and processes. It is the Company''s policy that no trading in derivatives for speculative
purposes may be undertaken.

(i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices,
will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

a) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates
primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) in
United States Dollar (''USD''), Euro (''EUR''), Great Britain Pound (''GBP''), Canadian dollar (''CAD'') and borrowings in
USD.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company''s fixed rate borrowings are carried at amortised cost and hence are not
subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will
fluctuate because of a change in market interest rates. Further, the Company''s investments in deposits is with banks and
electricity authorities and therefore do not expose the Company to significant interest rates risk. The Company''s main
interest rate risk arises from borrowings with variable rates, which expose it to cash flow interest rate risk.

The Company does not have any investments which are classified in the balance sheet either as fair value through OCI or
at fair value through profit or loss. Hence, the Company is not exposed to any price risk.
ii) 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 from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and
control relating to customer credit risk management. The credit quality of a customer is assessed based on an extensive
credit rating scorecard, internal evaluation and individual credit limits. The Company evaluates the concentration of risk
with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in
largely independent markets.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due. The expected loss rates are based on the payment profiles of sales over the last 12 quarters before
the reporting date and the corresponding historical credit losses experienced at the end of each quarter. The historical
loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability
of the customers to settle the receivables. The expected credit loss assessment from customers as at March 31, 2025 are
as follows:

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit

obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

below:

(a) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to current investment patterns
in the economy; if plan assets underperform this yield, this will create a deficit. The plan asset investments are subject
to interest rate risk. The Company has a risk management strategy where the aggregate amount of risk exposure is
maintained at a fixed range. Any deviations from the range are corrected by rebalancing the investments. The Company
intends to maintain the investment pattern in the continuing years.

(b) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an
increase in the value of the plans'' bond holdings.

(c) Life expectancy: The defined benefit obligation is to provide benefits for the life of the member, so increases in life
expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases
result in higher sensitivity to changes in life expectancy.

Ihe weighted average duration of the defined benefit plan obligation at the end of the reporting period is 4.86 years (31 March
2024: 4.85 years).

Expected Contribution to the plan for the next annual period ^ 17.53 millions.

(ii) The Company provides for accumulation of compensated absences by certain categories of its employees. These employees
can carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods as per the
Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the
services that increases this entitlement.

39. Details of discontinued operations:

The company vide Business Transfer Agreement (BTA) dated August 30, 2024 entered into with Thyrocare Technologies Limited
(Buyer) for sale and transfer of its Diagnostic and Pathological services business (Business) under slump sale, for a consideration
of ^ 70 million, transferred the said Business to the buyer on October 11, 2024. In addition to the above consideration, the
company through the Brand and Trademarks License Agreement (BTLA) with the buyer, will receive a Brand Royalty fee of 5%
of the Revenue from this business over a period of at least 2 years from the date of actual transfer of business.

40 Segment Reporting

The Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as required by Ind
AS 108 Operating Segments. The Company is in the business of providing contract research and testing services. The Managing
Director reviews the operations of the Company as one operating segment taking into account the nature of the business, the
organization structure, internal reporting structure and risk and rewards. Hence no separate segment information has been
furnished herewith.

41 Capital management and ratios

The Company''s objectives when managing capital are to 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. In order to maintain or adjust the capital structure, the Company may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the following gearing ratio i.e. Net debt (total borrowings net of cash and cash
equivalents) divided by total equity (as shown in the balance sheet):

42 The Company had entered into a Public Private Partnership
(PPP) agreement with Food Safety and Standards Authority
of India (FSSAI) on June 29, 2021 to setup, operate and
transfer (SOT) a National food Testing Laboratory (NFL) in
JNPT,Mumbai. In accordance with the provisions of Ind AS
115, this arrangement has been considered as a "Service
Concessionaire Arrangement" (SCA) and accordingly,
revenue and costs are allocatable between those relating
to lab setup services and those relating to operation and
maintenance services. Further, the Company has acquired
the right to charge the customer for the services to be
rendered which has been assessed as an intangible asset.

Consequently, the amount of revenues from operations
and lab setup expenses includes ^ 4.3 million for year
ended March 31, 2025 and ^ 2.36 million for year ended
March 31, 2024 , respectively representing the revenues
relating to lab setup services provided under SCA, the
costs of fulfilling the contract and the right to charge the
customer for the services to be rendered, respectively.

43 Pursuant to the Scheme of Amalgamation ("the Scheme")
under Section 230 to 232 of the Companies Act, 2013
sanctioned by the Hon''ble National Company Law
Tribunal, Hyderabad bench vide order dated 23rd January
2025, EMTAC Laboratories Private Limited (EMTAC),
a wholly owned Subsidiary of the Company has been
amalgamated with the Company on the appointed date,
i.e., 1^st April, 2024. In terms of the Scheme, the assets and
liabilities of EMTAC have been vested with the Company
and have been accounted in accordance with the "Pooling
of Interest Method" as laid down in Appendix - C, of
Indian Accounting Standard i.e, Ind. AS 103 - Business
Combinations. Accordingly, the comparative financial
information for the year ended 31^st March, 2024 have
been restated by duly including the figures of the said
subsidiary.

44 Disclosure U/s.186(4) of the Companies Act, 2013. During the year under review, The Company has not given any loans, made

Investment, given Guarantee, provided Security to any others.

45 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries")
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party
identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company
shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 Other Statutory Information

(i) The Company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the
Companies Act, 1956.

(ii) The Company does not have any transaction which is not recorded in the books of account that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

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

(iv) No Proceeding has been initiated or pending against the Company under the Benami Transactions (Prohibition) Act, 1988
and the rules made thereunder.

(v) The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the
Companies (Restriction on number of layers) Rules 2017.

(vi) The Company has not granted loans or advances in the nature of loans to the promoters, directors or KMPs and the
related parties as defined in the companies act, 2013 either severally or jointly with any other person that are repayable
on demand or without specifying terms or period of repayment.

47 Previous year figures have been regrouped/reclassified wherever necessary to correspond with the current year classification

and disclosure.

Per our report of even date attached.

For Gattamaneni & Co For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 009303S Dr. S. P. Vasireddi Harita Vasireddi Harriman Vungal

Executive Chairman Managing Director ED-Operations

DIN :00242288 DIN:00242512 DIN :00242621

G. Srinivasa Rao G Purnachandra Rao K. Siva Rama Krishna Sujani Vasireddi

Partner Director Chief Financial Officer Company Secretary

Membership No. 210535 DIN : 00876934

Place: Hyderabad Place: Hyderabad

Date : April 28, 2025 Date : April 28, 2025

---

Mar 31, 2024

i) Unsecured loan of '' Nil (Previous year '' 2.4 Million) to Emtac Laboratories Pvt Ltd, subsidiary carries interest @9% p.a payable on monthly basis.

ii) The company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) except the loan to Wholly Owned Susidiary, either severally or jointly with any other person that are repayable on demand; or without specifying any terms or period of repayment.

(i) There are no repatriation restrictions in respect of cash and cash equivalents in the reporting period and previous period.

(ii) Unclaimed Dividends are transferred to Investor Education and Protection Fund after seven years from due date in accordance with applicable provisions of the Companies Act, 2013.

(iii) Term deposit with original maturity of more than twelve months but remaining maturity of less than twelve months from the balance sheet date have been disclosed under other bank balances.

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of shares i.e. equity shares having par value of '' 2/- per share. Each shareholder is entitled to one vote per share held and ranks pari passu. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in the case of Interim Dividend.

In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The board of directors of the company have recommended a dividend of '' 2/- per equity share of '' 2/- each for the financial year 2023-24 (FY 2022-23: '' 2/- per equity share of '' 2/- each), subject to approval of the shareholders at the ensuing Annual General Meeting, and if approved, would result in a cash outflow of approximately '' 44.34 Mn.

Nature and purpose of reserves:

Security premium: This is the premium received on issue of equity shares and will be utilised as per the applicable provisions of the Act.

General reserves: This is the amount transferred from retained earnings and will be utilised as per the applicable provisions of the Act.

Retained earnings: This comprises of net accumulated profit of the Company after declaration of dividend.

Other comprehensive income: This comprises of actuarial gain/(loss) [net of taxes] at the end of the reporting period.

Share based payment reserve: This comprises of share options granted by the company to its employees under its share option plan. Refer Note 15 (e) for further details

Note:(a) Terms and conditions of secured rupee term loans and nature of security

1. i) The working capital term loan from Axis Bank

aggregating to '' 7.30 Million as at March 31, 2024 (Previous Year '' 15.27 Million) (Sanctioned limit of '' 23.90 Million in FY 2020-21) under emergency Credit Line Guarantee Scheme is secured by extension of charge (second charge) on existing primary and collateral security and guaranteed by NCGTC.

ii) The above mentioned working capital term loan carries interest at the rate of 9.25% fixed {Prev Year 9.25%} and is repayable in 36 equal monthly installments commencing from March, 2022.

2. i) The Rupee term loan from Axis Bank aggregating to

'' 40.31 Million as at March 31, 2024 (Sanctioned limit of '' 262.50 Million in FY 2023-24) is secured by way of first charge on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company.

ii) The above mentioned rupee term loan carries interest at the rate of 8% (REPO Rate 1.50%) and is repayable in 16 quarterly instalments with a 6 months moratorium period from the date of first disbursement.

(b) Terms and conditions of secured foreign currency term loans and nature of security

1. The foreign currency term loan availed from Axis Bank taken for General Capex aggregating to '' 38.81 Million (equivalent to USD 0.4654 Million) as at March 31, 2024 (Sanctioned limit of '' 75.00 Million in FY 2020-21 and subsequently converted into FCTL of USD 1.034 Million) (Previous Year '' 55.27 Million )is secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at 12 Months SOFR 275 bps plus 1% per annum (mark up fee upfront) and repayable in 20 equal quarterly installments commencing from March 2022.

2. The foreign currency term loan availed from Axis Bank taken for E& E Project aggregating to '' 51.97 Million(equivalent to USD 0.6234 Million) as at March 31, 2024 (sanctioned limit of '' 150.00 Million in FY 2020-21 and subsequently converted into FCTL of USD 1.1775 Million) (Previous Year '' 74.03 Million) secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase - II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at 12 Months SOFR 275 bps 1.00% per annum(markup fee upfront) and repayable in 20 quarterly installments commencing from March, 2022.

(c) Unsecured loans from NBFC:

1. The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 0.32 Million as at March 31, 2024 (Sanctioned limit of '' 8.67 Million in FY 2019-20) carries at NIL interest and is repayable in 20 quarterly installments commencing from September,

2019. (Previous Year '' 1.53 Million)

2) The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 1.01 Million as at March 31, 2024 (Sanctioned limit of '' 9.69 Million in FY 2019-20) carries at NIL interest and is repayable in 20 quarterly installments commencing from January,

2020. (Previous Year '' 2.35 Million)

3) The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 0.73 Million as at March, 31, 2024 (sanctioned limit of '' 4.54 Million in FY 2020-21) carries an interest at the rate of 5.00% as at March 31, 2024 and is repayable in 20 quarterly installments commencing from September, 2019. (Previous Year '' 1.42 Million)

(e) Details of working capital limits from banks:

1. The working capital facility from Axis bank amounting '' Nil as at March 31, 2024 (sanctioned limit '' 150 Million) carries an interest of 3 months MCLR plus spread of 0.10% and is secured by way of first paripassu charge on entire current assets of the company (both present and future) along with HDFC Bank ltd.

2. The working capital facility from HDFC bank amounting '' 51.44 Million as at March 31, 2024 (sanctioned limit '' 150 Million) carries an interest of 3 Months T Bill plus spread of 2.12% and is secured by way of first paripassu charge on entire current assets of the company(both present and future) along with Axis bank ltd.

3. First paripassu charge to HDFC bank on Industrial land and building situated at Plot No 141/2 and 142, IDA, Phase -II, Cherlapally, Hyderabad- 500051 as collateral security.

(f) There were no defaults as on current balance sheet date and previous year in repayment of all the above borrowings and interest thereon.

(g) The company has used the borrowings from Banks and Financial Institutions for the specific purpose for which it was taken at the Balance sheet date.

(h) For the borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the company with Banks are in agreement with the books of account.

(i) Company is not a declared willful defaulter by any Bank or Financial Institution or other lender.

(j) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period in respect of the above borrowings.

31 Earnings per share

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, cash and cash equivalents and other bank balances that derive directly from its operations. The Company also holds investment in its subsidiary.

The carrying amounts of trade receivables, trade payables and cash and bank balances are considered to be the same as their fair values, due to their short-term nature. The difference between carrying amounts and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value. For financial assets measured at fair values, the carrying amounts are equal to the fair values.

33 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken.

(i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

a) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) in United States Dollar (''USD''), Euro (''EUR''), Great Britain Pound (''GBP''), Malaysian Ringgit (''MYR''), Swiss Franc (''SF''),Singapore dollar (''SGD'') Japan Yen (''JY'') , Canadian dollar (''CAD'') and borrowings in USD.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s fixed rate borrowings are carried at amortised cost and hence are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. Further, the Company''s investments in deposits is with banks and electricity authorities and therefore do not expose the Company to significant interest rates risk. The company''s main interest rate risk arises from borrowings with variable rates, which expose it to cash flow interest rate risk.

The Company does not have any investments which are classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. Hence, the Company is not exposed to any price risk. ii) 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 from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. The credit quality of a customer is assessed based on an extensive credit rating scorecard, internal evaluation and individual credit limits. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over the last 12 quarters before the reporting date and the corresponding historical credit losses experienced at the end of each quarter. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The expected credit loss assessment from customers as at March 31, 2024 are as follows:

Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

Financial assets that are neither past due nor impaired

Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.

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, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

iv) Excessive risk concentration

Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company''s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels.

34 Contingent liabilities & Commitments (to the extent not provided for)
Particulars	As at	As at
	31 March 2024	31 March 2023
A. Contingent liabilities Claims against the Company not acknowledged as debts in respect of: (i) Employees provident fund demand not provided for (pending before the	8.70	8.70
Employees'' Provident Funds Appellate Tribunal) (ii) Good & Service Tax for FY 2018-19	4.95
	13.65	8.70
Bank Guarantees excluding financial guarantees	34.64	16.18
Corporate Guarantees given to Subsidary Companies	9.00	9.00

Note:

(a) Bank Guarantees are issued to meet certain business obligations towards government agencies and certain customers.

(b) Based on the Supreme Court Judgment dated February 28, 2019, the Company was required to reassess the components to be included in the basic salary for the purposes of deduction of Provident Fund. On the basis of legal advice, the management has determined that there is no impact of the aforesaid ruling on the standalone financial statements of the Company.

(c) The Indian Parliament has approved the Code on Social Security,2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security,2020 on November 13, 2020, and has invited suggestions from stakeholders which are unconsideration by the Ministry. The company will assess the impact and and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

(d) The amounts disclosed above represent our best estimate and the uncertainties are dependent on the outcome of the legal processes initiated by the Company or the claimant as the case may be.

B. Commitments
Particulars	As at	As at
	31 March 2024	31 March 2023
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	346.53	70.27

C. Impact of pending Litigations:

There are no material pending litigations against the company, which will impact its financial position.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit

obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

below:

(a) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to current investment patterns in the economy; if plan assets underperform this yield, this will create a deficit. The plan asset investments are subject to interest rate risk. The Company has a risk management strategy where the aggregate amount of risk exposure is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the investments. The Company intends to maintain the investment pattern in the continuing years.

(b) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

(c) Life expectancy: The defined benefit obligation is to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 4.85 years (31 March 2023: 4.35 years).

Expected Contribution to the plan for the next annual period '' 18.16 millions.

(ii) The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement.

40 Segment Reporting

The Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as required by Ind AS 108 Operating Segments. The Company is in the business of providing contract research and testing services. The Managing Director reviews the operations of the Company as one operating segment taking into account the nature of the business, the organization structure, internal reporting structure and risk and rewards. Hence no separate segment information has been furnished herewith.

41 Capital management and ratios

The Company''s objectives when managing capital are to 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. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

* As at 31 March 2023 borrowings are lower than the Cash and Cash equivalents and Bank Deposits resulting in a negative net debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. Further there were no changes were made in the objectives, policies or processes for managing capital for the year ended March 31, 2024.

c) The Company has given corporate guarantee of '' Nil to EMTAC Laboratories Pvt Ltd to the bank for the purpose of working capital sanction during the year (Previous year - '' 9 Million)

d) The Company has not provided any securities during the year (Previous year - Nil)

43 The company has entered into a Public Private Partnership (PPP) agreement with Food Safety and Standards Authority of India (FSSAI) on June 29, 2021 to setup, operate and transfer (SOT) a National food Testing Laboratory (NFL) in JNPT,Mumbai. In accordance with the provisions of Ind AS 115, this arrangement has been considered as a "Service Concessionaire Arrangement" (SCA) and accordingly, revenue and costs are allocatable between those relating to lab setup services and those relating to operation and maintenance services. Further, the Company has acquired the right to charge the customer for the services to be rendered which has been assessed as an intangible asset.

Consequently, the amount of revenues from operations and lab setup expenses includes '' 2.36 million for year ended March 31, 2024 and '' 19.86 million for year ended March 31, 2023, respectively representing the revenues relating to lab setup services provided under SCA, the costs of fulfilling the contract and the right to charge the customer for the services to be rendered, respectively.

44 The Board of Directors of the Company in their meeting held on March 30, 2024 considered and approved the proposed scheme of amalgamation ("scheme") wherein EMTAC Laboratories Private Limited a wholly-owned subsidiary of the company will be amalgamated with the Company under sections 230 to 232 and other applicable provisions of the Companies Act, 2013 read with the rules made thereunder. The aforesaid scheme is subject to the approval of shareholders and creditors of the respective companies, Stock Exchanges, National Company Law Tribunal and such other Authorities / regulators as may be required.

The above proposed scheme has no impact on the standalone financials of the company for the year ended March 2024.

45 Disclosure pursuant to requirements of Rule 11(e) (i) & (ii) of the Companies (Audit and Auditors) Rules

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 Other Statutory Information

(i) The company has no transactions with companies struck off under Sec.248 of the companies Act, 2013 or Sec.560 of the Companies Act, 1956.

(ii) 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 Act, 1961

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

(iv) No Proceeding has been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(v) The company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.

(vi) The company has not granted loans or advances in the nature of loans to the promoters, directors or KMPs and the related parties as defined in the companies act, 2013 either severally or jointly with any other person that are repayable on demand or without specifying terms or period of repayment.

47 Previous year figures have been regrouped/reclassified wherever necessary to correspond with current year classification and disclosure.

---

Mar 31, 2023

Nature and purpose of reserves:

Security premium: This is the premium received on issue of equity shares and will be utilised as per the applicable provisions of the Act.

General reserves: This is the amount transferred from retained earnings and will be utilised as per the applicable provisions of the Act.

Retained earnings: This comprises of net accumulated profit of the Company after declaration of dividend.

Other comprehensive income: This comprises of actuarial gain/(loss) [net of taxes] at the end of the reporting period.

Share based payment reserve: This comprises of share options granted by the company to its employees under its share option plan. Refer Note 15 (e) for further details

(a) Terms and conditions of secured rupee term loans and

nature of security

for FY 2022-23

1. i) The working capital term loan from Axis Bank amounting to '' 15.27 Million as at March 31, 2023 (Sanctioned limit of '' 23.90 Million in the FY 202021) under emergency Credit Line Guarantee Scheme is secured by extension of charge (second charge) on existing primary and collateral security and guaranteed by NCGTC.

ii) The above mentioned working capital term loan carries interest at the rate of 9.25% fixed {Prev Year 1 Year MCLR 0.10% i.e., 7.45%} and is repayable in 36 equal monthly installments commencing from March, 2022 (as per sanction letter)

for FY 2021-22

1. i) The working capital term loan from Axis Bank amounting to '' 23.24 Million as at March 31, 2022 (Sanctioned limit of '' 23.90 Million in the FY 202021) under emergency Credit Line Guarantee Scheme is secured by extension of charge (second charge) on existing primary and collateral security and guaranteed by NCGTC.

ii) The above mentioned working capital term loan carries interest at the rate of 1 Year MCLR 0.10% i.e., 7.45% {Prev Year 4% (Repo rate) 3.5% i.e., 7.5% p.a} and is repayable in 36 equal monthly installments commencing from March, 2022 (as per sanction letter)

(b) Terms and conditions of secured foreign currency term

loans and nature of security

1. The foreign currency term loan outstanding from Axis Bank taken for General Capex amounting to '' 55.27 Million (equivalent to USD 0.67222 Million) as at March 31, 2023 (Sanctioned limit of '' 75.00 Million in FY 2020-21 and subsequently converted into FCTL of USD 1.034 Million) is secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase -II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at 12 Months SOFR 275 bps plus 1% per annum (mark up fee upfront) and repayable in 20 equal quarterly installments commencing from March 2022 (as per sanctioned letter).

2. The foreign currency term loan outstanding from Axis Bank taken for E& E Project amounting to '' 74.03 Million (equivalent to USD 0.9004 Million) as at March 31, 2023 (sanctioned limit of '' 150.00 Million in FY 2020-21 and subsequently converted into FCTL of USD

I. 177522 Million) is secured by way of first charge to bank on assets created out of Term Loan. This loan is also secured by Second Charge on Current Assets (both present and future) of the company at pari passu basis with HDFC Bank Ltd. The loan is covered by collateral security by way of equitable mortgage of property bearing Plot Nos.141/2 & 142, IDA, Phase -

II, Cherlapally, Hyderabad - 500 083, Telangana.

The above mentioned foreign currency term loan carries interest at SOFR 275 bps 1.00% per annum(markup fee upfront) and repayable in 20 quarterly installments commencing from March, 2022 (as per sanction letter).

(c) Secured rupee term loans from NBFC:

1. i) The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' Nil as at March 31, 2023 (Sanctioned limit '' 19.24 Million in FY 201920) is secured by way of exclusive charge on assets acquired from such loan by way of hypothecation.

ii) The above mentioned rupee term loan carries an interest at the rate of 5.00% as at March 31, 2023 and is repayable in 12 Quarterly installments commencing from October, 2019.

(d) Unsecured loans from NBFC:

1. The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 1.53 Million as at March 31, 2023 (Sanctioned limit of '' 8.67 Million in FY 2019-20) carries at NIL interest and is repayable in 20 quarterly installments commencing from September, 2019.

2) The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 2.35 Million as at March 31, 2023 (Sanctioned limit of '' 9.69 Million in FY 2019-20) carries at NIL interest and is repayable in 20 quarterly installments commencing from January, 2020.

3) The rupee term loan from Cisco Systems Capital India Private Limited amounting to '' 1.42 Million as at March, 31, 2023 (sanctioned limit of '' 4.54 Million in FY 2020-21) carries an interest at the rate of 5.00% as at March 31, 2023 and is repayable in 20 quarterly installments commencing from September, 2019.

(f) Details of working capital limits from banks:

1. The working capital facility from Axis bank amounting '' Nil as at March 31, 2023 (sanctioned limit '' 150 mn) carries an interest of 1 Year MCLR plus spread of 0.80% and is secured by way of first paripassu charge on entire current assets of the company (both present and future) along with HDFC Bank ltd.

2. The working capital facility from HDFC bank amounting '' Nil as at March 31, 2023 (sanctioned limit '' 150 mn) carries an interest of 3 Months T Bill plus spread of 2.67% and is secured by way of first paripassu charge on entire current assets of the company (both present and future) along with Axis bank ltd.

3. First paripassu charge to HDFC bank on Industrial land and building situated at Plot No 141/2 and 142, IDA, Phase -II, Cherlapally, Hyderabad- 500051 as collateral security.

(g) There were no defaults as on balance sheet date In repayment of above borrowings and interest thereon (Period and amount)

(h) The company has used the borrowings from Banks and Financial Institutions for the specific purpose for which it was taken at the Balance sheet date.

(i) For the borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the company with Banks are in agreement with the books of account.

(j) Company is not a declared willful defaulter by any Bank or Financial Institution or other lender.

(k) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period.

*i) Waiver of duty of '' 45.19 millions on import of plant and equipment under Export Promotion Capital Goods (EPCG) Scheme relating to duty waiver received in previous years. There are no contingencies attached to these grants except the fulfilment of export obligations. As these grants are relating to Plant and equipments, the same has been capitalised and amortised over the useful life of respective assets.

**ii) The company was granted an in-principle approval of a grant-in-aid of '' 7.1 million during FY 2017-18 by the biotechnology industry research assistance council for project entitled towards preclinical evaluation of clinical grade vaccine. Against this sanctioned amount, so far an amount of '' 2.13 millions was received. Since the terms and conditions are fulfilled during the current year, company has recognized grant income on receipt of the balance grant amount.

The Company''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, cash and cash equivalents and other bank balances that derive directly from its operations. The Company also holds investment in its subsidiary.

The carrying amounts of trade receivables, trade payables and cash and bank balances are considered to be the same as their fair values, due to their short-term nature. The difference between carrying amounts and fair values of bank deposits, other financial assets, other financial liabilities and borrowings subsequently measured at amortised cost is not significant in each of the years presented. For all other amortised cost instruments, carrying value represents the best estimate of fair value. For financial assets measured at fair values, the carrying amounts are equal to the fair values.

33 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and processes. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken.

(i) Market Risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

a) Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency) in United States Dollar (''USD''), Euro (''EUR''), Great Britain Pound (''GBP''), Malaysian Ringgit (''MYR''), Swiss Franc (''SF''),Singapore dollar (''SGD'') Japan Yen (''JY'') , Canadian dollar (''CAD'') and borrowings in USD.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s fixed rate borrowings are carried at amortised cost and hence are not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. Further, the Company''s investments in deposits is with banks and electricity authorities and therefore do not expose the Company to significant interest rates risk. The company''s main interest rate risk arises from borrowings with variable rates, which expose it to cash flow interest rate risk.

The Company does not have any investments which are classified in the balance sheet either as fair value through OCI or at fair value through profit or loss. Hence, the Company is not exposed to any price risk. ii) 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 from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. The credit quality of a customer is assessed based on an extensive credit rating scorecard, internal evaluation and individual credit limits. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Collateral held as security and other credit enhancements

The Company does not collect any collateral or other credit enhancements to cover its credit risks associated with its financial assets.

Financial assets that are neither past due nor impaired

Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.

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, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

Management monitors rolling forecasts of the Company''s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management. In addition, the Company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

iv) Excessive risk concentration

Concentrations arise when a number of counter parties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company''s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels.

34 Contingent liabilities & Commitments (to the extent not provided for)
Particulars	As at	As at
	31 March 2023	31 March 2022
A. Contingent liabilities Claims against the Company not acknowledged as debts in respect of: Employees provident fund demand not provided for (pending before the Employees'' Provident Funds Appellate Tribunal)	8.70	8.70
	8.70	8.70
Bank Guarantees excluding financial guarantees	16.18	15.70
Corporate Guarantees given to Subsidary Companies	9.00	-

Note:

(a) Based on the Supreme Court Judgment dated February 28, 2019, the Company was required to reassess the components to be included in the basic salary for the purposes of deduction of Provident Fund. On the basis of legal advice, the management has determined that there is no impact of the aforesaid ruling on the standalone financial statements of the Company.

(b) The Indian Parliament has approved the Code on Social Security,2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security,2020 on November 13, 2020, and has invited suggestions from stakeholders which are unconsideration by the Ministry. The company will assess the impact and and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

(c) Bank Guarantees are issued to meet certain business obligations towards government agencies and certain customers.

(d) The Company has given corporate guarantee of Rs 9.00 million to EMTAC Laboratories Pvt Ltd to the bank for the purpose of working capital sanction during the year.

B. Commitments
Particulars	As at	As at
	31 March 2023	31 March 2022
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	70.27	18.21
C. Impact of pending Litigations:
There are no material pending litigations against the company, which will impact its financial position.
35 Leases
The Company''s significant leasing arrangements are in respect of operating leases for premises. The leasing arrangements are generally cancellable leases which range between 1 years to 5 years and are usually renewable by mutual consent on agreed terms.
Particulars	For the year ended	For the year ended
	31 March 2023	31 March 2022
Total rental expense relating to operating lease	27.40	22.51
- Non-cancellable	-	-
- Cancellable	27.40	22.51

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit

obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed

below:

(a) Asset volatility: The plan liabilities are calculated using a discount rate set with reference to current investment patterns in the economy; if plan assets underperform this yield, this will create a deficit. The plan asset investments are subject to interest rate risk. The Company has a risk management strategy where the aggregate amount of risk exposure is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the investments. The Company intends to maintain the investment pattern in the continuing years.

(b) Changes in bond yields: A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans'' bond holdings.

(c) Life expectancy: The defined benefit obligation is to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans'' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 3 years (31 March 2022: 3 years).

Expected Contribution to the plan for the next annual period '' 92.96 millions.

(ii) The Company provides for accumulation of compensated absences by certain categories of its employees. These employees can carry forward a portion of their unutilised compensated absences and utilise/encash them in future periods as per the Company''s policy. The Company records a liability for compensated absences in the period in which the employee renders the services that increases this entitlement.

40 Segment Reporting

The Managing Director of the company has been identified as the Chief Operating Decision Maker (CODM) as required by Ind AS 108 Operating Segments. The Company is in the business of providing contract research and testing services. The Managing Director reviews the operations of the Company as one operating segment taking into account the nature of the business, the organization structure, internal reporting structure and risk and rewards. Hence no separate segment information has been furnished herewith.

41 Capital management

The Company''s objectives when managing capital are to 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. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

* As at 31 March 2023 borrowings are lower than the Cash and Cash equivalents and Bank Deposits resulting in a negative net debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. Further there were no changes were made in the objectives, policies or processes for managing capital for the year ended March 31, 2023.

c) The Company has given corporate guarantee of '' 9.00 million to EMTAC Laboratories Pvt Ltd to the bank for the purpose of working capital sanction during the year (Previous year - Nil)

d) The Company has not provided any securities during the year (Previous year - Nil)

43 Pursuant to the notification issued by the central government under Foreign Trade Policy 2015-20 vide Notification no 29 dated September 23, 2021 the admissible rate on net foreign earnings has been revised to 5% from 7%. Accordingly, an impact of '' 12.24 million is recognised as an exceptional item during the year ended March 31, 2022.

44 The company has entered into a Public Private Partnership (PPP) agreement with Food Safety and Standards Authority of India (FSSAI) on June 29, 2021 to setup, operate and transfer (SOT) a National food Testing Laboratory (NFL) in JNPT, Mumbai. In accordance with the provisions of Ind AS 115, this arrangement has been considered as a "Service Concessionaire Arrangement" (SCA) and accordingly, revenue and costs are allocatable between those relating to lab setup services and those relating to operation and maintenance services. Further, the Company has acquired the right to charge the customer for the services to be rendered which has been assessed as an intangible asset.

Consequently, the amount of revenues from operations and lab setup expenses includes '' 19.86 million for year ended March 31, 2023 and '' 138.43 million for the year ended March 31, 2022, respectively representing the revenues relating to lab setup services provided under SCA, the costs of fulfilling the contract and the right to charge the customer for the services to be rendered, respectively.

45 Other Statutory Information

(i) The company has no transactions with companies struck off under Sec. 248 of the companies Act, 2013 or Sec. 560 of the Companies Act, 1956.

(ii) 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 Act, 1961

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

(iv) No Proceeding has been initiated or pending against the company under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(v) During the year, no scheme of arrangements has been approved by the competent authority in terms of Sec. 230 to 237 of the Act, in which the company is a party.

(vi) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

vii) 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 persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

viii) The company has complied with the number of layers prescribed under Clause 87 of Sec. 2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.

(ix) The company has not granted loans or advances in the nature of loans to the promoters, directors or KMP''s and the related parties as defined in the companies act, 2013 either severally or jointly with any other person that are repayable on demand or without specifying terms or period of repayment.

46 Previous year figures have been regrouped/reclassified wherever necessary to correspond with current year classification and disclosure.

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Mar 31, 2018

1.Financial risk management

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken.

a) 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 for the Company comprises primarily of currency and equity risk. Financial instruments affected by market risk include trade and other receivables and derivatives. The sensitivity analyses in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets.

The following assumptions have been made in calculating the sensitivity analyses:

(i) The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018 and 31 March 2017."

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency) in US Dollars (''USD'') and Euro, and foreign currency borrowings in USD.

* Holding all other variables constant

The Company’s investments in term deposits (i.e., certificates of deposit) with banks and therefore do not expose the Company to significant interest rates risk.

b) Credit risk

Credit risk is the risk that counter party 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 and financial institutions, foreign exchange transactions and other financial instruments.

Trade and other receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial assets that are neither past due nor impaired

None of the Company’s cash equivalents, including term deposits (i.e., certificates of deposit) were past due or impaired as at 31 March 2018.

Other than trade receivables, the Company has no significant class of financial assets that is past due but not impaired.

Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company’s finance team in accordance with the Company’s policy. Investments of surplus funds are made only with approved and reputed banks and within credit limits assigned to each bank. The amounts invested and details of relevant banks are reviewed by the Company''s Board of directors on annual basis.

c) 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, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out by the Company in accordance with practice and limits set by the management. In addition, the Company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

d) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and industry levels.

3. Capital management

The Company’s objectives when managing capital are to 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. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio :

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

4. Related Party disclosures

a) Name of the related parties and nature of relationship

Name of the related parties Nature of relationship

(i) Key Management Personnel

Dr S P Vasireddi Executive Chairman

Harita Vasireddi Managing Director

V Harriman Executive Director - Operations

V V Prasad Executive Director - Admn.

T S Ajai Independent Director

Dr Subba Rao Pavuluri Independent Director (upto 10/10/2017)

Prof D. Balasubramanian Independent Director

Rao Purnachandra Potarlanka Independent Director

V Prameela Rani Independent Director (w.e.f 01/12/2017)

A Venkataramana Company Secretary

Murali Mohana Rao Mokkapati Chief Financial Officer

(ii) Relatives of Key Management personnel

Sireesh Chandra Vungal Son of ED - Operations

Sudheshna Vungal Daughter of ED - Operations

Satya Sreenivas Neerukonda Son-in-law of ED - Admn.

Praveena Vasireddi Daughter of Executive Chairman

Sujani Vasireddi Daughter of ED - Admn.

(iii) Others

Ananth Technologies Limited Public company in which one of the directors of

the company is a director.

41 First-time adoption of Ind AS

These financial statements, for the year ended 31 March 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at 1 April 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

A. Exemptions and exceptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions.

(i) Deemed cost for property, plant and equipment

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

(ii) Estimates

The estimates as at 1 April 2016 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies). The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at 1 April 2016 (transition date) and 31 March 2017.

(iii) De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

(iv) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortized cost has been done retrospectively except where the same is impracticable.

(v) Business combination

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

C. Notes to first-time adoption:

(I) Proposed dividend (including dividend distribution tax)

Under Indian GAAP, proposed dividends including dividend distribution tax (DDT) are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, a proposed dividend is recognized as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid. In the case of the Company, the declaration of dividend occurs after period end. Therefore, the liability of ''.26.60 Millions for the year ended on 31 March 2016 recorded for dividend has been derecognized against retained earnings. Consequently, the total equity increased by an equivalent amount.

(ii) Government grant

Under Indian GAAP, government grants could be recognized under the capital approach or the income approach. However, Ind AS requires government grants to be recognized using the deferred income approach. The Company received a grant of ''.6.64 millions during the year ended 31 March 2017. Consequently, the capital work-in-progress and corresponding deferred grant income has increased by an equivalent amount.

(iii) Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or a separate component of equity. On the date of transition, the net impact on deferred tax liabilities is of ''Nil (1 April 2016 : ''Nil).

(iv) Trade receivables

As per Ind AS 109, the Company is required to apply expected credit loss model for recognizing the allowance for doubtful debts. Under Indian GAAP, the Company has created provision for impairment of receivables consists only in respect of specific amount for incurred losses. As per the management''s assessment, due to ECL model, there is no additional impact on the allowance for doubtful debts.

(v) Borrowings

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method. Under Indian GAAP, these transaction costs incurred in connection with borrowings are amortized and charged to profit or loss thereon over the period of borrowings. There is no impact on borrowings, total equity and profit for the year on account of the aforesaid adjustment.

(vi) Remeasurements of post-employment benefit obligations

Both under Indian GAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements comprising of actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI. Thus, the employee benefit is reduced by Rs.8.38 Millions (corresponding tax impact of '' 2.90 Million has been considered) and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI net of tax.

(vii) Retained earnings

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

(viii) Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

(ix) Statement of cash flows

The transition from Indian GAAP to Ind AS had no material impact on the statement of cash flows.

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Mar 31, 2016

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

Note : As the liability for Gratuity is provided on actuarial basis for all the employees of the company including whole-time directors as a whole, amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included in the above.

1.. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2016 is Rs.1,29,250/-(Previous year Rs.627,828/-) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

2. Corporate Social Responsibility (CSR) : To comply with the Corporate Social Responsibility (CSR) requirements under the provisions of Section 135 (5) of the Companies Act, 2013 read with the Rules made there under, the Company has determined the eligible amount at Rs.18,96,478/- being the 2% of the average net profits of the Company in the three immediately preceding years. Against which, an amount of Rs.19,59,714/- (including Rs.63,236/- balance amount to be spent against previous year''s obligation) contributed during the year to Charitable Trusts for carrying out the activities specified by the Board and charged the same to statement of Profit and Loss.

3. Previous year''s figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year. Paise have been rounded off to the nearest rupee.

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Mar 31, 2015

I) Cash credit from State Bank of India (Limit) Rs. 9,00,00,000/- (previous year Rs. 13,00,00,000/-) carrying interest @ 3.75% above base rate for CC (Hyp.) and for EPC and FBD as applicable to export finance(i.e., 3 Months average LIBOR 150 basis points), is secured by First charge (hypothecation) of all the current assets of the Company on exclusive basis as primary security and collaterally secured by extension of charge on the fixed assets of the Company and structures thereon alongwith EM of Company's land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-II, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-I admeasuring 52620 sq. yards situated at Turkapally Village, Shameerpet Mandal, R.R. Dist.

ii) There are no defaults as on the Balance Sheet date in repayment of the above loan and interest thereon.

2.1 Related party disclosures (AS-18)

Names of the Key Management Personnel related parties, nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Executive Chairman

Harita Vasireddi Managing Director

V Harriman Executive Director - Operations

V V Prasad Executive Director - Administration

A Venkataramana Company Secretary

Sankaraiah Peram Chief Financial Officer

B) Relatives of Key Management Personnel

Swarnalatha Vasireddi Wife of Executive Chairman

Sireesh Chandra Vungal Son of ED - Operations

Sudheshna Vungal Daughter of ED - Operations

Satya Sreenivas Neerukonda Son-in-Law of ED - Administration

Rajeswari Vungal Wife of ED - Operations

Praveena Vasireddi Daughter of Executive Chairman

C) Other related parties Ananth Technologies Limited (Companies in which Bloomedha Info Solutions Limited some of the Directors or other relatives are interested)

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

ii) Aggregate Related Party transactions for the year 2013-14

Note : As the liability for Gratuity is provided on actuarial basis for all the employees of the company including whole-time directors as a whole, amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included in the above.

2.2. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2015 is Rs. 627,828/- (Previous year Rs. 17,351,782/-) and maximum obligation on long- term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

Note : The Company's appeals against the orders of Commissioner of Service Tax , Hyderabad - III for the financial years 2005-06 to 2009-10 and 2010-11 before the CESTAT, South Zone Bench, Bangalore were disposed in favour of the Company.

3. Corporate Social Responsibility (CSR) : To comply with the Corporate Social Responsibility (CSR) requirements under the provisions of Section 135 (5) of the Companies Act, 2013 read with the Rules made, thereunder, the Company has determined the eligible amount at Rs. 4,67,236/- being the 2% of the average net profits of the Company in the three immediately preceding years. Against which, an amount of Rs. 4,04,000/- contributed during the year to Charitable Trust for carrying out the activities specified by the Board and charged the same to statement of P&L .

4. Previous year's figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year. Paise have been rounded off to the nearest rupee.

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Mar 31, 2014

1. As at As at 31.03.2014 31.03.2013 Rs. Rs.

1) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

I) Contingent liabilities

a) Claims against the company not acknowledged as debt : i) Disputed service tax demand for the year 2005-06 to 2009-10 277,846,538 277,846,538

ii) Disputed service tax deducted for the year 2010-11 60,335,240 60,335,240

iii) Disputed Lease charges on equipment Nil 15,476,286

b) Guarantees issued by bank 1,36,58,296 12,594,172

II) Commitments b) Other Comitantes : a) Future minimum lease payments under operating lease 646,250 1,412,953

TOTAL 352,486,324 367,665,189

i) The Company has filed appeal and for stay of demand against the order of Commissioner of Service Tax, Hyderabad-III against the Service Tax demand of Rs.277,846,538/- (Service tax of Rs.138,923,269/- & penalty of Rs.138,923,269/-) for financial year 2005-06 to 2009-10 before the CESTAT, South Zonal Bench, Bangalore. The CESTAT has directed the company to pay an amount of Rs.20,000,000/- and granted stay for the balance demand. Accordingly, company has paid the same and the appeal is pending disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence, the same is shown as a contingent liability.

ii) The Company has filed appeal and for stay of demand against the order of commissioner of Service Tax, Hyderabad - III against the Service Tax demand of Rs.60,335,240/- (Service tax of Rs.30,167,620/- and penalty of Rs.30,167,620/-) for financial year 2010-11 before the CESTAT, South Zonal Bench, Bangalore. On appeal, the CESTAT has stayed the demand and the appeal is pending disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence, the same is shown as a contingent liability.

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Mar 31, 2013

I) Cash credit from State Bank of India (Limit) Rs. 130,000,000/- (previous yearRs.. 110,000,000/-) carrying interest @ 7% above base rate for CC(Hyp.) and 2.75% above base rate for EPC and FBD, is secured by First charge (hypothecation) of all the current assets of the Company on exclusive basis as primary security and collaterally secured by extension of charge on the fixed assets of the Company and structures thereon along with EM of Company''s land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-ll, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-1 admeasuring 52620 sq. yards situated at Turkapally Village, Shameerpet Mandal, R.R. Dist.

ii) Working capital facility from HSBC Ltd (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively) carried interest @ LIBOR 3.67% and 14% per annum is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

iii) There are no defaults as on the Balance Sheet date in repayment ofthe above loans and interest thereon.

iv) Corporate Loan from State Bank of India carrying interest @7% above base rate, is secured by First charge on fixed assets of the company and structures thereon along with EM of company''s land under Plot No. 141/2 & 142 admeasuring 1.66 Ac. situated at IDA, Phase-ll, Cherlapally, R.R. Dist. and land under Plot No.5, Alexandria Knowledge Park, Phase-1 admeasuring 52620 sq. yards situated atTurkapally Village, Shameerpet Mandal, R.R. Dist. The loan is repayable in monthly installments of Rs..5,00,000/- each.

v) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency was secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future. The loan amount was carrying interest of LIBOR 65 bps to 150 bps repayable in quarterly installments as per the sanctioned letter. The entire loan amount was repaid before the end of the year.

As at As at 31.03.2013 31.03.2012 Rs. Rs.

1) CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

1.1 Contingent liabilities

a) Claims against the company not acknowledged as debt:

i) Disputed service tax demand for the year 2005-06 to 2009-10 277,846,538 277,846,538 (See note (a) below)

ii) Disputed service tax deducted for the year 2010-11 60,335,240 - (See note (b) below)

iii) Disputed Lease charges on equipment 15,476,286 -

b) Guarantees issued by bank . 12,594,172 16,174,626

1.2 Commitments

a) Future minimum lease payments under operating lease 1,412,953 25,950,271

TOTAL 367,665,189 319,971,435

#The Company has filed an appeal and for stay of demand against the order of Commissioner of Service Tax, Hyderabad-Ill against the demand ofRs.. 277,846,538/-(Service tax ofRs.. 138,923,269/-and penalty ofRs.. 138,923,269/-) before the CESTAT, South Zonal Bench, Bangalore. The CESTAT has directed the company to pay an amount of Rs..20,000,000/- after hearing the stay of demand petition and company has paid Rs.. 20,000,000/-as per the above order. The appeal is pending for disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence no provision is made for this liability.

The Company has filed an appeal against the order of commissioner of Service Tax, Hyderabad - III against the demand of Rs.. 60,335,240/- (Service tax ofRs.. 30,167,620/- and penalty ofRs.. 30,167,620/-) before the CESTAT, South Zonal Bench, Bangalore. The appeal is pending for disposal. The legal counsel has confirmed the validity of the Company''s claim. Hence no provision is made for this liability.

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Mar 31, 2012

1) LONG-TERM BORROWINGS

i) Corporate Loan from State Bank of India was secured by hypothecation of equipment procured with the loan as primary security and extension of pari passu charge on other fixed assets of the Company, other than the assets which were acquired with Hire Purchase loans, Grants and Soft loans from Government and other institutions. The loan was also secured by second charge on current assets of the company on pari passu basis. The loan was carrying interest of 16.75% repayable in monthly installments of Rs. 5,00,000/- each.

ii) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency was secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future. The loan amount was carrying interest of LIBOR plus 65 bps to 150 bps, repayable in quarterly installments as per the sanction letter.

Note: There are no continuing defaults as on the Balance sheet date in repayment of all the above loans and interest thereon.

2) SHORT TERM BORROWINGS

i) Cash credit from State Bank of India (limit) Rs. 110,000,000 (Previous Year Rs. 120,000,000) carried interest @ 16.75% and secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of parri passu charge on land, buildings and fixed assets of the company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Working capital facility from HSBC Bank (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively) carried interest @ LIBOR plus 3.67% and 14% per annum is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

iii) There are no continuing defaults as on the Balance sheet date in repayment of the above loans and interest thereon.

3.1 Related party disclosures (AS-18)

Names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director

V Harriman Director-Technical

V V Prasad Executive Director

Harita Vasireddi Director-Quality

B) Relatives of Key Management Personnel

Swarnalatha Vasireddi Wife of Managing Director

Sireesh Chandra Vungal Son of Director Technical

Sujani Vasireddi Daughter of Executive Director

Satya Sreenivas Neerukonda Son-in-Law of Executive Director

Rajeswari Vungal Wife of Director Technical

C) Associates Vimta Specialities Limited

D) Other related parties Ananth Technologies Limited Bloomedha Info Solutions Limited

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

4.1. Leases (AS-19) :

The Company has taken certain equipment under non canceleable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2012 is Rs. 2,02,02,764/- (Previous year Rs. 2,30,39,190/-) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows:

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Mar 31, 2011

1. Secured Loans

I) Cash credit from State Bank of India - limit ` 1200 lakhs,

Outstanding -Rs.1323.17 lakhs (previous year Rs. 900 lakhs and Rs. 1021.44 lakhs respectively) is secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of pari passu charge on land, buildings and fixed assets of the Company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Corporate Loan from State Bank of India limit Rs. 250 lakhs; outstanding Rs. 75.77 lakhs (previous year Rs. Nil) is secured by hypothecation of equipment procured with the loan as primary security and extension of pari passu charge on other fixed assets of the Company other than the assets which are acquired with Hire Purchase loans, Technology Development Board and Grants from Government and other institutions. In addition, also secured by second charge on current assets on pari passu basis.

iii) Term Loan from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) repayable in foreign currency limit of Rs. 1000 lakhs and outstanding Rs. 546.71 lakhs (previous year Rs. 1000 lakhs and Rs. 887.02 lakhs respectively) is secured by pari passu charge on entire movable and immovable fixed assets of the Company, other than the assets which are acquired with Hire purchase loans, Soft loan from Technology Development Board and Grants from Government and other Institutions both present and future as primary security and extension of pari passu charge on entire current assets of the Company both present and future.

iv) Working capital facility from HSBC Bank aggregating is Rs.650 lakhs (consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees), outstanding of ` 472.88 lakhs repayable in Foreign Currency and Rs. Nil in Indian Rupees (Previous year Rs. 473.38 lakhs repayable in foreign currency and Rs. 114.11 lakhs in Indian rupees) is secured by first pari passu charge on entire current assets of the Company other than the assets which are acquired with Hire purchase loans, Soft loan from Technology Development Board and Grants from Government and other Institutions both present and future and second pari passu charge on movable fixed assets of the Company both present and future.

v) Soft loan from Technology Development Board, Limit Rs. 485 lakhs, outstanding Rs. 107.98 lakhs, (previous year Rs. 485 lakhs and ` 243.98 lakhs respectively) is secured by hypothecation of plant and equipment procured with the said loan.

2. Current Liabilities and Provisions

a) Sundry Creditors

I) Amounts due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in schedule 8, Current Liabilities) has been determined to the extent such parties have been identified on the basis of information available with the Company. The disclosures relating to Micro and small enterprises as at 31st March, 2011 are as under :-

Note : Information on SSI Units and the Units covered under Micro, Small and Medium Enterprise Development Act, 2006 is based on the information collected by the Management from the vendors and relied upon by the auditors.

b) Service Tax Demand

Out of the Service tax demand of Rs. 68.86 lakhs raised on the Company in earlier years, the Commissioner (Appeals) - III gave a relief of Rs. 65.17 lakhs to the Company. For the balance demand of Rs. 3.69 lakhs, the Company has filed an appeal before CESTAT, South Zonal Branch, Bangalore and the appeal is pending before them. The legal counsel has confirmed the validity of the Company's claim. Hence no provision is made for this liability. It is shown as a contingent liability. (Refer Sch.10)

c) Export Obligations

In order to obtain Import Licenses under the Export Promotion Capital Goods Scheme of Government of India, the Company has given an undertaking to fulfill certain quantified export obligations. In case of non-fulfillment of such obligations, the Company shall be liable to pay the concessions in duty availed and interest on unfulfilled export obligations under the said scheme. Till 31.03.2011, the Company has fulfilled the required export obligations under the scheme and hence no liability is foreseen on account of this. Accordingly no liability is provided for on account of this.

d) Cess U/s.441A of Companies Act, 1956 As the Central Government has not yet notified the date for levy of Cess u/s 441A of the Companies Act, 1956, no provision has been made for the same.

e) Foreign currency exposure not hedged : Foreign currency exposure not hedged by a derivative instrument or otherwise on account of Borrowings from Banks, including interest accrued thereon - USD 2293720 (Previous year USD 3050001).

3. Current Assets, Loans & Advances : In the opinion of Management, Current Assets, Loans & Advances have a value and realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known unrecoverable items has been made.

4. Related party disclosures

Pursuant to Accounting Standard-18 (AS-18) issued by the ICAI, the names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director V Harriman Director - Technical V V Prasad Executive Director Harita Vasireddi Director - Quality

B) Relatives of Key Management Personnel

V Swarnalatha General Manager V Sireesh Chandra Manager-IT V Sujani Asst. Manager-Fin. & Admn. N Satya Sreenivas Manager-BD. V Rajeswari Owner of Chennai Office Premises

C) Associates Vimta Specialities Limited

D) Other related Ananth Technologies Limited Parties L V Prasad Eye Institute

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

As the liability for Gratuity is provided on actuarial basis for all the employees of the Company as a whole, the amount pertaining to the Key Management Personnel and their relatives is not ascertainable and therefore not included above.

5. Operating Leases :

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 36 months. The lease rental charge grouped under operating lease charges during the year ended March, 2011 is Rs. 230.39 lakhs (Previous year Rs. 22.04 lakhs) and maximum obligation on long-term non-cancelable operating lease payable as per the rentals stated in respective agreements are as follows :

e) Value of all imported and indigenous raw materials, spare parts & components consumed during the year and the percentage of each to the total consumption

The Company is not carrying on any manufacturing activities but engaged in the business of Contract Research and Testing in the fields of Clinical and Pre Clinical Studies, Clinical Reference, Analytical Testing, Advanced Molecular Biology and Environmental studies. The Company’s business requires variety of chemicals and consumables in small quantities and does not require any raw materials. It is not practicable to furnish the quantitative details of these chemicals & consumables as number of small quantities are consumed. Hence, aggregate value of all imported and indigenous chemicals & consumables and spares & components consumed and the percentage of each to the total consumption are furnished below :

6. Information to be furnished under Sec. 22 of Micro, Small and Medium Enterprises Development Act, 2006 in relation to dues and interest payable on the dues to micro, small and medium enterprises is — Nil

7. As per the provisions of Income tax Act, 1961 applicable for the current year, no tax needs to be deducted at source from the proposed dividend on equity shares.

8. Previous year's figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year.

9. Paise are rounded off to the nearest rupee.

10. Information pursuant to the provisions of part IV of schedule VI of the companies Act, 1956.

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Mar 31, 2010

1. Secured Loans

i) Cash credit limit ` 900 lakhs, Outstanding - ` 1021.44 lakhs (previous year ` 1000 lakhs and ` 1095.23 lakhs respectively) from State Bank of India is secured by hypothecation of all the current assets of the Company as primary security by way of pari passu charge and extension of parri passu charge on land, buildings and fixed assets of the company, other than the assets which are acquired with Hire Purchase loans, Soft loan from Technology Development Board and grants from Government and other Institutions.

ii) Term Loans repayable in foreign currency from State Bank of India (limit ` 3300 lakhs; outstanding ` NIL lakhs) (previous year ` 3300 lakhs and ` 868.92 lakhs respectively) are secured by equitable mortgage of land and hypothecation of buildings situated at Plot Nos. 141/2 & 142, IDA Phase II, Cherlapally, Hyderabad and Plot No: 5, Alexandria Knowledge Park (formerly known as S P Bio-Tech Park), Genome Valley, Hyderabad and hypothecation of equipment procured with the term loans as primary security by way of pari passu charge and extension of pari passu charge on other fixed assets of the Company situated at other places, other than the assets which are acquired with Hire Purchase loans, Grants and Soft loans from Government and other institutions.

iii) Term Loan repayable in foreign currency from The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) limit of ` 1000 lakhs and outstanding of ` 887.02 lakhs (previous year ` 1000 Lakhs and ` 154.64 lakhs respectively) is secured by pari passu charge on entire movable and immovable fixed assets of the company, both present and future as primary security and extension of pari passu charge on entire current assets of the company both present and future.

iv) Working capital facilities from HSBC Bank aggregating is ` 650 lakhs consisting of PCFC loan and Vendor Finance repayable in foreign currency and Indian Rupees respectively, outstanding of ` 473.39 lakhs in Foreign Currency and ` 114.12 lakhs in Indian Rupees aggregating to ` 587.51 lakhs (Previous year ` Nil) is secured by first pari passu charge on entire current assets of the company both present and future and second pari passu charge on movable fixed assets of the company both present and future.

v) Soft loan from Technology Development Board, Limit ` 485 lakhs, outstanding ` 243.98 lakhs, (previous year ` 485 lakhs and ` 343.51 lakhs respectively) is secured by hypothecation of plant and equipment procured with the said loan.

2. Current Liabilities and Provisions

a) Sundry Creditors

i) Name(s) of small scale industrial undertakings to whom the Company owe any sum together with interest outstanding for more than 30 days - Nil (Previous year Nil)

ii) The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (as disclosed in schedule 8, Current Liabilities) has been determined to the extent such parties have been identified on the basis of information available with the company. The disclosures relating to Micro and small enterprises as at 31st March, 2010 are as under :-

(in Rs.)

Sl. Description As at As at No. 31.03.2010 31.03.2009

1. The principal amount remaining

unpaid at the end of accounting year Nil Nil

2. The interest due thereon remaining

unpaid to supplier as at the end of Nil Nil

accounting year

3. The amount of interest paid in terms of

Section 16, along with the amount of the Nil Nil

payment made to the supplier beyond

the appointed day during the year.

4. The amount of interest due and

payable for the period of delay in Nil Nil

making payment (which have been paid

but beyond the appointed day during

the year) but without adding the interest

specified under this act.

5. The amount of interest accrued

during the year and remaining unpaid Nil Nil

at the end of the accounting year.

6. The amount of further interest

remaining due and payable even in the Nil Nil

succeeding years, until such date when

the interest dues as above are actually paid to the small enterprises, for the

purpose of disallowance as a

deductable expenditure under Sec. 23.



Note : Information on SSI Units and the Units covered under Micro, Small and Medium Enterprise Development Act, 2006 is based on the information collected by the Management from the vendors and relied upon by the auditors.

b) Income Tax Demand

An aggregate demand of Rs. 89.90 lakhs has been raised on the Company in the Income-tax assessments completed for assessment years 2002-03 to 2004-05, rejecting the claim of the Company for deduction of income from exports from its total income. The Companys legal counsel has confirmed the validity of the deductions claimed by the Company. The Company has deposited the demands in full under protest and disputed before the Appellate Authorities and the same are pending before ITAT, Hyderabad as on date. In view of the above, no provision is made for the said demand of Rs. 89.90 lakhs in the books of account. The same is reflected in the contingent liabilities.(Refer Sch. 10)

c) Service Tax Demand

A Service tax demand of Rs. 68.86 lakhs has been raised on the company for the period from 01.04.2003 to 31.01.2006 and the company has contested the same before Commissioner (Appeals) - III and got a relief of Rs. 65.17 lakhs. For the balance demand of Rs.3.69 lakhs, the Company has filed an appeal before CESTAT, South Zonal Branch, Bangalore and the appeal is pending before them. The legal counsel has confirmed the validity of the companys claim. Hence no provision is made for this demand liability. It is shown as a contingent liability.(Refer Sch.10)

d) Export Obligations

In order to obtain Import Licenses under the Export Promotion Capital Goods Scheme of Government of India, the Company has given an undertaking to fulfill certain quantified export obligations. In case of non-fulfillment of such obligations, the Company shall be liable to pay the concessions in duty availed and interest on unfulfilled export obligations under the said scheme. Till 31.03.2010, the Company has fulfilled the required export obligations under the scheme and hence no liability is foreseen on account of this. Accordingly no liability is provided for on account of this.

e) Cess U/s.441A of Companies Act, 1956

As the Central Government has not yet notified the date for levy of Cess u/s 441A of the Companies Act, 1956, no provision has been made for the same.

f) Foreign currency exposure not hedged :

Foreign currency exposure not hedged by a derivative instrument or otherwise on account of Borrowings from Banks, including interest accrued thereon - USD 3050001 (Previous year USD 2109000).

3. Current Assets, Loans & Advances : In the opinion of Management, Current Assets, Loans & Advances have a value and realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known unrecoverable items has been made.

5. Related party disclosures

Pursuant to Accounting Standard-18 (AS-18) issued by the ICAI, the names of the related parties and nature of relationships and particulars of transactions with the said related parties during the year are as follows :

i) Names of the related parties and description of relationship.

A) Key Management Personnel

Dr S P Vasireddi Chairman & Managing Director

V Harriman Director - Technical

V V Prasad Executive Director

Harita Vasireddi Director - Quality

B) Relatives of Key Management Personnel

V Swarnalatha General Manager

V Sireesh Chandra Manager-II

V Sujani Asst. Manager-Fin. & Admn.

N Satya Sreenivas Manager-BD.

V Rajeswari Owner of Chennai Office Premises

C) Associates Vimta Specialities Limited

D) Other related parties Ananth Technologies Limited

L V Prasad Eye Institute

Note : Information of related parties and the relationship is as identified by the Company on the basis of information available with them and relied upon by the auditors.

e) Value of all imported and indigenous raw materials, spare parts & components consumed during the year and the percentage of each to the total consumption

f) Managerial Remuneration

Notes:

i) The above amount consists of remuneration paid up to 25.03.2010 in accordance with the terms of appointment approved by the members in the general meeting held on 19.09.2009 and for the balance period in accordance with the terms of appointment approved by the Board in its meeting held on 26.03.2010, which requires approval of shareholders by way of Special resolution.

ii) As the net profit computed in accordance with the provisions of Sec.349 of the Companies Act, 1956 is inadequate to pay the remuneration and commission to the Managing and other whole-time directors as per Section 198, minimum remuneration permissible under Clause B of Section II of Part II of Schedule XIII to the Companies Act, 1956 is paid.

iii) Perquisites include Companys contribution towards PF and other non-monetary benefits valued as per Income Tax Rules.

iv) As the liability for Gratuity is provided on actuarial basis for all the employees of the company as a whole, the amount pertaining to the Directors is not ascertainable and therefore not included above.

6. Information to be furnished under Sec. 22 of Micro, Small and Medium Enterprises Development Act, 2006 in relation to dues and interest payable on the dues to micro, small and medium enterprises is — Nil

7. As per the provisions of Income tax Act, 1961 applicable for the current year, no tax needs to be deducted at source from the proposed dividend on equity shares.

8. Previous years figures have been regrouped / recasted wherever considered necessary to conform to the layout of the accounts adopted in the current year.

9. Paise are rounded off to the nearest rupee.

10. Information pursuant to the provisions of part IV of schedule VI of the companies Act, 1956.