To the Members of
Cohance Lifesciences Limited
Report on the Audit of the Standalone Financial Statements
Opinion
1. We have audited the accompanying standalone financial statements of Cohance Lifesciences Limited (the Company), which comprise the Standalone Balance Sheet as at 31 March 2026, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash Flow and the Standalone Statement of Changes in Equity for the year then ended, and notes to the Standalone financial statements, including material accounting policy information and other explanatory information.
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (the Act) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2026, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Our responsibilities under those standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter - Amalgamation of Cohance
Lifesciences Limited with the Company
4. We draw attention to Note 58 to the accompanying standalone financial statements, which describes that pursuant to the Scheme of Amalgamation (the "Cohance Scheme") between the Company and Cohance Lifesciences Limited (Transferor Company"), as approved by the Honble National Company Law Tribunal vide its order dated 27 March 2025, the Transferor Company has been amalgamated with the Company. The amalgamation has been accounted for in the manner as prescribed under the Cohance Scheme and in accordance with the Appendix C of Ind AS 103 - Business Combinations, applicable to business combination of entities under common control as also prescribed in the Cohance Scheme. Accordingly, the comparative financial information for the year ended on 31 March 2025 presented in accompanying standalone financial statements, have been adjusted to reflect the aforesaid amalgamation, as described further in the said note. Our opinion is not modified in respect of this matter.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
6. We have determined the matters described below to be the key audit matters to be communicated in our report.
| Key audit matters | How our audit addressed the key audit matters |
| Revenue Recognition | Our audit procedures included, but were not limited to, the following: |
| Refer note 2.11 to the accompanying Standalone Financial Statements for material accounting policy information on revenue recognition and note 26 for the related disclosure made during the year) | a) Obtained an understanding of the managements process for revenue recognition and assessed the appropriateness of the accounting policy on revenue recognition in accordance with Ind AS 115; |
| The Company derives revenues primarily from manufacture and sale of Active Pharma Ingredients (API) including intermediates. The Company recognises the revenue from contracts with customers in accordance with Ind AS 115 "Revenue from Contracts with Customers" (Ind AS 115) when the performance obligation is satisfied, which in case of sale of goods is determined to be at the point of time, when the customer obtains controls of the goods and services. The revenue towards a performance obligation is measured based on the transaction price specified in the contract, net of discounts, returns and goods and services tax. | b) Evaluated the design and tested the operating effectiveness of key controls over the recognition and measurement of revenue; |
| Revenue is a key performance indicator and with the diverse terms of contracts with customers, revenue is determined to be an area involving significant risk in line with the requirements of Standards on Auditing, and hence, requires significant auditor attention. Further, the application of Ind AS 115 requires management to make certain significant judgements/ estimates, such as determining the timing of revenue recognition and transaction price, including the impact of variable consideration in the form of profit shares as per the terms of contracts with the customers. | c) Performed substantive analytical procedures on revenue such as ratio analysis, region-wise sale analysis, etc to identify any unusual and/or material variances; |
| Considering the diverse terms of contracts with customers, volume of the transactions, materiality of the amount involved, and significant attention required by the auditor as mentioned above, revenue recognition has been identified as a key audit matter for the current year audit. | d) Performed substantive testing on a selected samples of revenue transactions recorded during the year, and transactions recorded during a specific period before and after year end, by inspecting supporting documents such as invoices, agreements, dispatch memos, etc., to ensure revenue is recognised in the correct period and with correct amounts; |
| e) Evaluated the appropriateness of the managements assessment that the performance obligations arising from the contract research satisfy the criteria for revenue recognition over time, in accordance with Ind AS 115; | |
| f) Tested the calculations of the profit share accounted on expected value method to underlying arrangements with customers and other supporting documents; | |
| g) Tested all the manual sales-related adjustments made to revenue to ensure the appropriateness of revenue recognition during the year; and | |
| h) Assessed the adequacy and appropriateness of related disclosures made in the standalone financial statements with respect to revenue recognized during the year in accordance with the applicable accounting standards. |
| Impairment assessment of investment in subsidiaries | Our audit procedures included, but were not limited to, the following: |
| Refer Note 2.19(i)(c) of the accompanying standalone financial statements for material accounting policy information and note 9(a) for the related financial disclosures. | a. Obtained an understanding of the managements process for identification of impairment indicators and process followed by the management for impairment testing and evaluated the design and tested the operating effectiveness of key controls over such identification and impairment assessment; |
| As at 31 March 2026, the Company has investments in subsidiaries amounting to C547.96 crores in NJ Bio Inc and C258 crores in Sapala Organics Private Limited, which are carried at cost in accordance with Ind AS 27, Separate Financial Statements (Ind AS 27). | b. Assessed the appropriateness of the accounting policy adopted by the management in accordance with Ind AS 36; |
| At each period end, the management reviews whether any impairment indicators exist in the carrying amounts of investments in subsidiaries, in accordance with the requirements of Ind AS 36, "Impairment of Assets" (Ind AS 36). The Company assesses the recoverable amounts of each investment when impairment indicators exist. | c. Obtained the impairment assessment workings prepared by the management and valuation report provided by managements external valuation experts and assessed the competence, capability, and objectivity of the managements experts; |
| Managements assessment for determination of the recoverable amounts using discounted cash flow valuation method requires significant management judgment and estimates due to high estimation uncertainty involved. The key assumptions used in managements assessment of the recoverable amounts include, but are not limited to, projections of future cash flows, growth rates, discount rates, estimated future operating and capital expenditure. Changes to these assumptions could lead to material changes in estimated recoverable amounts, resulting in impairment. | d. Involved auditors valuation experts to assess the appropriateness of the valuation methodologies, the reasonableness of the assumptions used by the managements expert to determine the recoverable amounts; |
| Based on assessment made by the management, no adjustments are required to the carrying amounts of the investment in such subsidiaries as at 31 March 2026. | e. Evaluated and challenged managements assumptions such as implied growth rates during explicit period, terminal growth rate, future operating and capital expenditure and discount rates for their appropriateness based on our understanding of the business of these subsidiaries and traced the future cash flow projections to approved business plans of such subsidiaries; |
| Considering the materiality of the amounts and inherent subjectivity involved in auditing significant management judgment and estimates as mentioned above, impairment assessment of investment in subsidiaries has been identified as a key audit matter for the current year audit. | f. Tested the mathematical accuracy of the management computations; |
| g. Obtained sensitivity analysis performed by the management on key assumptions such as terminal growth rates and discount rates and performed independent sensitivity analysis of aforesaid key assumptions to assess the effect of reasonably possible variations on the current estimated recoverable amount to evaluate sufficiency of headroom between recoverable amount and carrying amount; and | |
| h. Evaluated the appropriateness and adequacy of disclosures given in the standalone financial statements in accordance with applicable accounting standards. |
| Impairment assessment of Goodwill | Our audit procedures included, but were not limited to, the following: |
| Refer Note 2.18 of the accompanying standalone financial statements for material accounting policy information and note 6 for the related disclosure on goodwill and its impairment. | |
| As at 31 March 2026, the Company has goodwill aggregating to C644.11 crores relating to API and formulation Cash Generating Unit (CGU). | a. Obtained an understanding of the managements process for identification of CGU and impairment testing, and evaluated the design and tested the operating effectiveness of key controls over such identification and impairment assessment; |
| The management has performed an annual impairment test of goodwill as required under Ind AS 36 "Impairment of Assets" (Ind AS 36) by determining the recoverable amount of the Cash Generated Unit (CGU) to which the goodwill is allocated, using the discounted cash flow method. | b. Assessed the appropriateness of the Companys accounting policy for impairment of goodwill in accordance with Ind AS 36; |
| The carrying amount of goodwill will be recovered through future cash flows and there is a risk that the assets will be impaired if these cash flows do not meet the Companys expectations. The impairment assessment process is complex as it involves significant judgements and estimates in key assumptions used by the management to determine the recoverable amounts, such as future cash flows, budgeted revenue, operating margins, growth rates and the discount rates. | c. Evaluated managements identification of CGU; |
| Considering the materiality of amounts involved together with the inherent subjectivity related to principal assumptions, which are dependent on current and future economic factors and trading conditions varying for different economic and geographical territories, impairment assessment of goodwill has been identified as a key audit matter for the current year audit. | d. Obtained the impairment assessment workings prepared by the management and valuation report provided by managements external valuation experts and assessed the competence, capability, and objectivity of the managements experts; |
| e. Involved auditors valuation experts to assess the appropriateness of the valuation methodologies and the reasonableness of the assumptions used by the managements expert to determine the recoverable amounts; | |
| f. Evaluated and challenged managements assumptions such as implied growth rates during explicit periods, terminal growth rates and discount rates for their appropriateness, based on our understanding of the business of such CGU and traced the future cash flow projections to approved business plans of such CGU; | |
| g. Tested the mathematical accuracy of the management computations; | |
| h. Obtained sensitivity analysis performed by the management on key assumptions such as terminal growth rates and discount rates and performed independent sensitivity analysis of aforesaid key assumptions to assess the effect of reasonably possible variations on the estimated recoverable amounts to evaluate sufficiency of headroom between recoverable amount and carrying amount; and | |
| i. Evaluated the appropriateness and adequacy of disclosures given in the standalone financial statements, in accordance with applicable accounting standards. |
Information other than the Standalone Financial Statements and Auditors Report thereon
7. The Companys Board of Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the standalone financial statements and our auditors report thereon. The Annual report is expected to be made available to us after the date of this audits report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
When we read the annual report, if concluded that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
8. The accompanying standalone financial statements have been approved by the Companys Board of Directors. The Companys Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind AS specified under section 133 of the Act and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
9. In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
10. The Board of Directors is also responsible for overseeing the Companys financial reporting process.
Auditors Responsibilities for the Audit of the
Standalone Financial Statements
11. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
12. As part of an audit in accordance with Standards on Auditing, specified under section 143(10) of the Act we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances Under section 143(3)
(i) of the Act we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
• Conclude on the appropriateness of Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern; and
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
13. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
14. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
15. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
16. The Comparative financial information presented in accompanying standalone financial statements includes the financial information of Cohance Lifesciences Limited, (hereinafter referred to as the "Transferor Company") for the year ended 31 March 2025, pursuant to the scheme of amalgamation between the Company and Transferor Company as explained in Note 44 to the accompanying standalone financial statements. The financial statement of the Transferor Company has been audited by then statutory auditor (other auditor) of the Transferor Company, who had issued unmodified opinion vide their audit report dated 30 April 2025. We have relied upon the aforesaid financial statements and the report of the other auditor as aforementioned and as furnished by the management for the purpose of our audit of the accompanying standalone financial statements. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
17. As required by section 197(16) of the Act, based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V to the Act.
18. As required by the Companies (Auditors Report) Order, 2020 (the Order) issued by the Central Government of India in terms of section 143(11) of the Act we give in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
19. Further to our comments in Annexure A, as required by section 143(3) of the Act based on our audit, we report, to the extent applicable, that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the accompanying standalone financial statements;
b) Except for the matters stated in paragraph 19(h)
(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The standalone financial statements dealt with by this report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with Ind AS specified under section 133 of the Act;
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2026 from being appointed as a director in terms of section 164(2) of the Act;
f) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in paragraph 19(b), above on reporting under section 143(3)(b) of the Act and paragraph 19(h)(vi) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended);
g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company as on 31 March 2026 and the operating effectiveness of such controls, refer to our separate report in Annexure B wherein we have expressed an unmodified opinion; and
h) With respect to the other matters to be included in the Auditors Report in accordance with rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company, as detailed in Note 37 to the standalone financial statements, has disclosed the impact of pending litigations on its financial position as at 31 March 2026;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31 March 2026;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended 31 March 2026;
iv. a. The management has represented that, to the best of its knowledge and belief as disclosed in Note 57(i) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any person(s) or entity(ies), including foreign entities (the intermediaries), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (the Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;
b. The management has represented that, to the best of its knowledge and belief, as disclosed in Note 57(ii) to the standalone financial statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (the Funding Parties), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under sub-clauses (a) and
(b) above contain any material misstatement.
v. The Company has not declared or paid any dividend during the year ended 31 March 2026.
vi. As stated in Note 44 to the standalone financial statements and based on our examination which included test checks, except for the instances / matters mentioned below, the Company, in respect of financial year commencing on or after 1 April 2025, has used an accounting software(s) for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same have been operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with other than the consequential impact of the exception given below. Furthermore except for instances/ matters mentioned below the audit trail has been preserved by the Company as per the statutory requirements for record retention.
Annexure A referred to in paragraph 18 of the Independent Auditors Report of even date to the members of Cohance Lifesciences Limited on the standalone financial statements for the year ended 31 March 2026
In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we report that:
(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment, capital work-in-progress and relevant details of right-of-use assets.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) The Company has a regular programme of physical verification of its property, plant and equipment, capital work-inprogress and relevant details of right-of-use assets under which the assets are physically verified in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain property, plant and equipment and relevant details of right-of-use assets were verified during the year and no material discrepancies were noticed on such verification.
(c) The title deeds of all the immovable properties held by the Company (other than properties where the Company is a lessee and lease agreement are duly executed in the favour of the lessee), disclosed in Note 3 to the standalone financial statements, are held in the name of the Company, except for the following properties, for which the Companys management is in the process of getting the registration in the name of the Company.
| Description of property | Gross carrying value (in Crores) | Held in name of | Whether promoter, director or their relative or employee | Period held | Reason for not being held in name of company |
| Land | 11.78 | Suven Lifesciences Limited | No | 22 September 2003 to till date | These properties are obtained from erstwhile companies which has now merged with the company in terms of approval of National Company Law Tribunal (NCLT)/Honorable high court of respective states and are legally owned by the Company. However, the land records are pending for suitable change to update the name of the Company from the erstwhile company. |
| 0.18 | Suven Synthesis Limited | No | 14 February 2001 to till date | ||
| 1.40 | Suven Nishtaa Pharma Private Limited | No | 13 December 2007 to till date | ||
| 12.57 | Inventis drug Delivery systems limited | No | 20 October 2003 to till date | ||
| 10.09 | RA chem Pharma limited | No | 2 August 2013 to till date | ||
| 3.29 | RA Chem Pharma Limited | No | 16 December 1999 to till date | ||
| 3.49 | RA Chem Pharma Limited | No | 1 January 2018 to till date | ||
| 6.57 | AVRA laboraties Private limited | No | 27 November 2000 to till date | ||
| Building | 0.90 | Suven Synthesis Limited | No | 14 February 2001 to till date |
For properties where the Company is a lessee, the lease arrangements have been duly executed in favour of the Company except in following cases:
| Description of property | Right of Use Asset Value (in Crores) | Location | Details of Lessor | Period held | Reason for non-execution of lease agreement |
| Land | 17.27 | GMR Aerospace and Industrial Park | GMR Hyderabad Aviation Sez Limited | 8 January 2017 to till date | These properties are obtained from erstwhile companies which has now merged with the company in terms of approval of National Company Law Tribunal (NCLT) and are legally owned by the Company. However, the land records are pending for suitable change to update the name of the Company from the erstwhile company. |
| Building | 1.72 | CDC Towers, Nacharam | CDC Industrial Infras Limited | 1 February 2020 to till date |
(d) The Company has adopted cost model for its Property, Plant and Equipment (including right-of-use assets) and intangible assets. Accordingly, reporting under clause 3(i)(d) of the Order is not applicable to the Company.
(e) No proceedings have been initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended) and rules made thereunder.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year, except for goods-in-transit. In our opinion, the coverage and procedure of such verification by the management is appropriate and no discrepancies of 10% or more in the aggregate for each class of inventory were noticed as compared to book records. In respect of goods-in-transit, these have been confirmed from corresponding receipt and/or dispatch inventory records.
(b) As disclosed in Note 47 to the standalone financial statements, the Company has been sanctioned a working capital limit in excess of C5 crores by banks based on the security of current assets. The quarterly returns/statements, in respect of the working capital limits have been filed by the Company with such banks and such returns/statements are in agreement with the books of account of the Company for the respective periods, which were subject to audit/review.
(iii) (a) The Company has not provided any security or granted any advances in the nature of loans to companies, firms, limited liability partnerships during the year. Further, the Company has made investments in 1 entity amounting to C 2.09 crores and provided guarantee to companies, and granted unsecured loans to employees during the year, as per details given below:
| Particulars | Guarantees | Loans |
| Aggregate amount provided/granted during the year: | ||
| - Subsidiary | 156.18 | Nil |
| - Employees | Nil | 0.75 |
| - Others | Nil | Nil |
| Balance outstanding as at balance sheet date: | ||
| - Subsidiary | 74.43 | Nil |
| - Others | Nil | 8.50 |
(b) In our opinion, and according to the information and explanations given to us, the investments made, guarantees provided and terms and conditions of the grant of all loans are, prima facie, not prejudicial to the interest of the Company.
(c) In respect of loans granted by the Company, the schedule of repayment of principal has been stipulated and the repayments/receipts of principal are regular. Further, no interest is receivable on such loans.
(d) There is no overdue amount in respect of loans or advances in the nature of loans granted to such companies, firms, LLPs or other parties.
(e) The Company has granted loan or advance in the nature of loans which had fallen due during the year but such loan or advance has not been renewed or extended nor has the Company granted fresh loans to settle the overdue amounts of existing loan or advance given to the same parties.
(f) The Company has not granted any loan, which are repayable on demand or without specifying any terms or period of repayment
(iv) In our opinion, and according to the information and explanations given to us, the Company has complied with the provisions of section 186 of the Act in respect of loans and investments made and guarantees provided by it, as applicable. Further, the Company has not entered into any transaction covered under section 185 of the Act.
(v) In our opinion, and according to the information and explanations given to us, the Company has not accepted any deposits or there are no amounts which have been deemed to be deposits within the meaning of sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, reporting under clause 3(v) of the Order is not applicable to the Company.
(vi) The Central Government has specified maintenance of cost records under sub-section (1) of section 148 of the Act in respect of the products of the Company. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) (a) In our opinion, and according to the information and explanations given to us, undisputed statutory dues including goods and services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities by the Company, though there have been slight delays in a few cases. Further, no undisputed amounts payable in respect thereof were outstanding at the year-end for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, we report that there are no statutory dues referred in sub-clause (a) which have not been deposited with the appropriate authorities on account of any dispute except for the following:
| Name of the statute | Nature of dues | Gross Amount (Din Crores.) | Amount paid under Protest (D in crores.) | Period to which the amount relates | Forum where dispute is pending | Remarks, if any |
| Goods and Service Tax Act, 2017 | Goods and Service Tax | 9.79 | 0.62 | 2019- 20 & 2020- 21 | Appellate Authority, Vijayawada | Nil |
| Goods and Service Tax | 0.96 | April 2011 - March 2013 | Custom, excise and service tax Appellate Tribunal, Hyderabad | Nil | ||
| Goods and service tax | 0.24 | 0.03 | FY 2017-18 and FY 2018-19 | Additional commissioner (Appeals), central tax, Hyderabad | Nil | |
| Income tax Act, 1961 | Income tax | 25.73 | - | AY 2024-25 | Commissioner | Nil |
| Income tax | 22.47 | - |
AY 2023-24 | of income tax (Appeals), Hyderabad | ||
| Income tax | 12.19 | - | AY 2022-23 | Deputy | Nil | |
| Income tax | 1.93 | 1.17 | AY 2017-18 | commissioner of income tax, Hyderabad | Nil | |
| Foreign exchange Management Act,1999 | Demand under foreign exchange management Act,1999 | 4.62 | July 2012 to June 2017 | Honorable Appellate Tribunal under foreign Exchange Management Act,1999 | Nil | |
| The Telangana Value Added tax, 2005 | Value Added Tax | 0.33 | 0.17 | January 2017 to June 2017 | Appellate Deputy commissioner (CT) Secunderabad | Nil |
| Value Added Tax | 0.15 | 0.03 | April 2013 to December 2016 | Telangana Value Added Appellate Tribunal, Hyderabad | Nil | |
| The Finance Act, 1994 | Service Tax | 9.43 | 0.35 | June 2012 to June 2017 | Custom, excise and service tax Appellate Tribunal, Hyderabad | Nil |
| Service Tax | 0.03 | January 2017 to June 2017 | Assistant Commissioner of Central Tax, Kukatpally Division | Nil | ||
| Service Tax | 3.36 | 0.09 | April 2011 to March 2013 | Custom, excise and service tax Appellate Tribunal, Mumbai | Nil | |
| The Customs Act, 1962 | Customs Act | 6.78 | 0.25 | November 2017- November 2019 | Custom, excise and service tax Appellate Tribunal, Chennai | Nil |
| The Customs Act, 1962 | Customs Act | 4.06 | January 2006 - December 2020 | Assistant Commissioner of Customs, Hyderabad, | Nil | |
| The Customs Act, 1962 | Customs Act | 0.01 | July 2013 - October 2015 | Custom, excise and service tax Appellate Tribunal, Hyderabad | Nil |
(viii) According to the information and explanations given to us, we report that no transactions were surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) which have not been previously recorded in the books of accounts.
(ix) (a) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of its loans or borrowings or in the payment of interest thereon to any lender.
(b) According to the information and explanations given to us and representation received from the management of the Company, and on the basis of our audit procedures, we report that the Company has not been declared a willful defaulter by any bank or financial institution or government or any government authority.
(c) In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of term loans during the year and there has been no utilisation during the current year of the term loans obtained by the Company during any previous years. Accordingly, reporting under clause 3(ix)(c) of the Order is not applicable to the Company.
(d) In our opinion and according to the information and explanations given to us, and on an overall examination of the financial statements of the Company, funds raised by the Company on short term basis have, prima facie, not been utilised for long term purposes.
(e) In our opinion and according to the information and explanations given to us and on an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries or associate company.
(f) In our opinion and according to the information and explanations given to us, the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries or associate company.
(x) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments), during the year. Accordingly, reporting under clause 3(x)(a) of the Order is not applicable to the Company.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or (fully, partially or optionally) convertible debentures during the year. Accordingly, reporting under clause 3(x)(b) of the Order is not applicable to the Company
(xi) (a) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company has been noticed or reported during the period covered by our audit
(b) According to the information and explanations given to us including the representation made to us by the management of the Company, no report under sub-section 12 of section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors)
Rules, 2014, with the Central Government for the period covered by our audit.
(c) According to the information and explanations given to us, the Company has received whistle blower complaints during the year, which have been considered by us while determining the nature, timing and extent of audit procedures.
(xii) The Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, reporting under clause 3(xii) of the Order is not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to us, all transactions entered into by the Company with the related parties are in compliance with sections 177 and 188 of the Act, where applicable. Further, the details of such related party transactions have been disclosed in the standalone financial statements, as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified in Companies (Indian Accounting Standards) Rules 2015 as prescribed under section 133 of the Act.
(xiv) (a) In our opinion and according to the information and explanations given to us, the Company has an internal audit system which is commensurate with the size and nature of its business as required under the provisions of section 138 of the Act.
(b) We have considered the reports issued by the Internal Auditors of the Company till date for the period under audit.
(xv) According to the information and explanation given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with its directors and accordingly, reporting under clause 3(xv) of the Order with respect to compliance with the provisions of section 192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clauses 3(xvi)(a), (b) and (c) of the Order are not applicable to the Company.
(d) Based on the information and explanations given to us and as represented by the management of the Company, the Group (as defined in Core Investment Companies (Reserve Bank) Directions, 2016) does not have any CIC.
(xvii) The Company has not incurred any cash losses in the current financial year as well as the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, reporting under clause 3(xviii) of the Order is not applicable to the Company.
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information in the standalone financial statements, our knowledge of the plans of the Board of Directors and management and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.
(xx) a) According to the information and explanations given to us, the Company has not transferred unspent amounts towards Corporate Social Responsibility in respect of other than ongoing projects to a Fund specified in Schedule VII to the Act as required under second proviso to sub-section (5) of section 135 of the said Act. However, the time period of six months from the end of financial year as permitted under second proviso to sub-section (5) of section 135 of the Act, has not lapsed till the date of our report.
b) In our opinion and according to the information and explanations given to us, the Company has transferred the remaining unspent amounts towards Corporate Social Responsibility (CSR) under sub-section (5) of section 135 of the Act, in respect of ongoing project, within a period of 30 days from the end of financial year to a special account in compliance with the provision of sub-section (6) of section 135 of the Act
| Financial year | Amount unspent on CSR in respect of ongoing projects (D In Crores) | Amount transferred to Special Accounts within 30 days from the end of the financial year (D In Crores) | Amount transferred after the due date (D In crores) | Date of transfer |
| FY 2025-2026 | 1.84 | 0.50 | Nil | 16 April 2026 |
| 1.34 | Nil | 29 April 2026 |
(xxi) The reporting under clause 3(xxi) of the Order is not applicable in respect of audit of standalone financial statements of the Company. Accordingly, no comment has been included in respect of said clause under this report.
Annexure B
Independent Auditors Report on the internal financial controls with reference to the standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (the Act)
1. In conjunction with our audit of the standalone financial statements of Cohance Lifesciences Limited (the Company) as at and for the year ended 31 March 2026, we have audited the internal financial controls with reference to financial statements of the Company as at that date.
Responsibilities of Management and Those Charged with Governance for Internal Financial Controls
2. The Companys Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance note) issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of the Companys business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditors Responsibility for the Audit of the Internal Financial Controls with Reference to Financial Statements
3. Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the ICAI prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements, and the Guidance Note issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements includes obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls with reference to financial statements.
Meaning of Internal Financial Controls with Reference to Financial Statements
6. A companys internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with Reference to Financial Statements
7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such controls were operating effectively as at 31 March 2026, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
Download The App Now
Follow us on
2026, IIFL Capital Services Ltd. All Rights Reserved
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
