OPERATIONS
You should read the following discussion of our financial condition and results of operations in conjunction with our Restated Consolidated Financial Information included in this Red Herring Prospectus as of and for the three months ended June 30, 2025 and the Financial Years 2025, 2024 and 2023, including the related notes, schedules and annexures on page 283. Our Restated Consolidated Financial Information have been prepared in accordance with Ind AS, Section 26 of the Companies Act, the SEBI ICDR Regulations and the Guidance Note. Ind AS differs in certain material respects from IFRS and U.S. GAAP. See " Risk Factors - External Risk Factors - Risks related to India - Significant differences exist between Ind AS used to prepare our financial information and other accounting principles, such as IFRS and U.S. GAAP, with which investors may be more familiar " on page 80.
This discussion contains certain forward-looking statements that involve risks and uncertainties and reflect our current view with respect to future events and financial performance, many of which are beyond our control, which may cause the actual results to be different from those expressed or implied by the forward-looking statements. See " Forward-Looking Statements " and " Risk Factors " on pages 19 and 30, respectively.
We have included certain non-Ind AS financial measures and other performance indicators relating to our financial performance and business in this Red Herring Prospectus, each of which is a supplemental measure of our performance and liquidity and not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS or U.S. GAAP. Furthermore, such measures and indicators are not defined under Ind AS, Indian GAAP, IFRS,
U.S. GAAP or other accounting standards, and therefore should not be viewed as substitutes for performance, liquidity, or profitability measures under such accounting standards. In addition, such measures, and indicators are not standardized terms and a direct comparison of these measures and indicators between companies may not be possible. Other companies may calculate these measures and indicators differently from us, limiting their usefulness as a comparative measure. Although such measures and indicators are not a measure of performance calculated in accordance with applicable accounting standards, our management believes that they are useful to an investor in evaluating our operating performance. Also see " Risk Factors - Certain Non-GAAP financial measures and other statistical information relating to our operations and financial performance have been included in this Red Herring Prospectus. These Non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable with those presented by other companies " on page 74.
Unless otherwise indicated, the industry and market-related information contained in this Red Herring Prospectus is derived from the report titled "Assessment of the Global and Indian Pharmaceuticals Industry" dated November 2025 (the " CRISIL Intelligence Report "), which has been commissioned and paid for by our Company for an agreed fee for the purposes of confirming our understanding of the industry exclusively in connection with the Offer. We officially engaged CRISIL Intelligence, a division of CRISIL Limited, in connection with the preparation of the CRISIL Intelligence Report pursuant to a commercial proposal dated January 7, 2025. The CRISIL Intelligence Report will be available on the website of our Company at until the Bid/Offer Closing Date in compliance with applicable law and has also been included in " Material Contracts and Documents for Inspection - Material Documents " on page 522. The information included in this section includes excerpts from the CRISIL Intelligence Report and may have been reordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the Offer), that have been left out or changed in any manner. For more information, see " Risk Factors ?€” This Red Herring Prospectus contains information from third parties, including an industry report prepared by an independent third-party research agency, CRISIL Intelligence, a division of CRISIL Limited, which we have commissioned and paid for to confirm our understanding of our industry exclusively in connection with the Offer and reliance on such information for making an investment decision in the Offer is subject to inherent risks " on page 49.
Our Companys financial year commences on April 1 and ends on March 31 of the immediately subsequent year. Unless otherwise indicated or the context otherwise requires, the financial information included herein is derived from the Restated Consolidated Financial Information included in this Red Herring Prospectus.
Overview
We are an India-focused branded pharmaceutical formulation company engaged in developing, manufacturing
and marketing products in womens healthcare, cardio-diabeto, pain management, urology and other therapeutic
areas. According to the CRISIL Intelligence Report (see " Industry Overview - Review of competition in the IPM - Top 30 companies in IPM (Indian Pharmaceutical market) by MAT (Moving Annual Total) sales - Key Observations " on page 182), we are the fastest growing company among the top-30 companies in the IPM in terms of domestic sales in the IPM, between MAT June 2024 and MAT June 2025. During this period, our domestic sales grew at a CAGR of 13.58% compared to the IPM which grew at a CAGR of 7.90% (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Top 30 companies in IPM (Indian Pharmaceutical market) by MAT (Moving Annual Total) sales - Key Observations " on page 182). Further, according to the CRISIL Intelligence Report (see " Industry Overview - Review of competition in the IPM - Top 30 companies in IPM (Indian Pharmaceutical market) by MAT (Moving Annual Total) sales - Key Observations " on page 182), we are the second fastest growing company among the top 30 companies in the IPM in terms of domestic sales between MAT June 2022 and MAT June 2025. During this period, our domestic sales grew at a CAGR of 16.77%, compared to the IPM which grew at a CAGR of 9.21%, displaying a growth of more than 1.82 times the IPMs growth (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Top 30 companies in IPM (Indian Pharmaceutical market) by MAT (Moving Annual Total) sales - Key Observations " on page 182). This has been driven by our growth in volume (at an average of 5.70% over the above period, compared to the IPMs growth of 2.15%), and new product launches (at an average of 4.57% over the above period, compared to the IPMs growth of 1.74%) (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Volume, Price and new product growth split of the total growth for CORONA and IPM " on page 192).
Our diversified product portfolio comprises 71 brands catering to a range of therapeutic areas such as womens healthcare, cardio-diabeto, pain management, urology and others/multispecialty pharmaceuticals (comprising VMN, gastrointestinal and respiratory), as of June 30, 2025. We have an established track record of building and scaling brands, as is reflected in our core portfolio of 27 "engine" brands, which contributed to 72.34% of our domestic sales during MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Key mother brands across therapy areas and applications for CORONA " on page
193). Our "engine" brands include market-leading brands such as Cor, Trazer, Cor9, B-29 and Myoril during MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Key mother brands across therapy areas and applications for CORONA " on page 193), through which we have been able to establish our market presence and drive further growth across each of our focused therapeutic areas. In terms of MAT June 2025 domestic sales, our Myoril, Cor and Trazer brands each hold the #1 rank in their respective sub-groups, COR-9 ranked third in its sub-group, and B-29 ranked fifth in its sub-group (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Sales bucket wise brands for CORONA - Key Observations " on page 196). According to the CRISIL Intelligence Report (see " Industry Overview - Review of competition in the IPM - Trend in CORONAs acute-chronic domestic sales " on page 186), the chronic and sub-chronic segment constituted 70.10% of our domestic sales during MAT June 2025, with the acute segment constituting the remaining 29.90%. As of June 2025, we had a comprehensive product portfolio across the different stages in womens healthcare, cardio-diabeto, pain management and urology, among other therapeutic areas.
?‚? Womens healthcare: We hold brands across the womens healthcare lifecycle, from adolescence to
infertility, pregnancy, post-pregnancy and pre- and post-menopause categories;
?‚? Cardio-diabeto: We offer brands across different stages of diabetes treatment, ranging from insulin resistance, pre-diabetes to diabetes and diabetes-related complications, as well as cardiac disorders such as hypertension, dyslipidemia and ischemic heart disease;
?‚? Pain Management: We have four dosage forms in pain management formulations, which we offer in the form of tablets, capsules, sprays and injections for treatments associated with musculoskeletal spasms and diabetes neuropathy pain, among others. We acquired a brand named "Myoril" from Sanofi in the Financial Year 2024, which bolstered our pain management portfolio and reinforced our positioning in this segment; and
?‚? Urology: We have brand offerings across multiple urological disorders, such as benign prostatic hyperplasia, overactive bladder, urinary tract infections and stone management.
In our addressable markets, we are the sixth largest pharmaceutical company in the IPM within the womens healthcare therapeutic area and the 22 nd largest in the cardio-diabeto therapeutic area, based on domestic sales for MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - CORONAs addressable market in key therapies in the IPM - Key Observations " on page 188). We are
also the 5 th largest pharmaceutical company in the IPM in pain management therapeutic area in our addressable market based on domestic sales for MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - CORONAs addressable market in key therapies in the IPM - Key Observations " on page 188). Additionally, we established a new urology SBU in 2023 and are the 9 th largest pharmaceutical company in India in terms of domestic sales for MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - CORONAs addressable market in key therapies in the IPM - Key Observations " on page 188).
The table below sets out our key brands across therapy areas with domestic sales and sub-group ranking within the Covered Market in MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - CORONAs key brands across specific therapeutic areas " on page 194):
| Brand | Domestic sales in MAT June 2025 ( Rs. in millions) | Contribution to domestic sales in MAT June 2025 (%) | Sub-group ranking during MAT June 2025 |
| Gynaecology | |||
| C- HOP | 365.81 | 2.56% | 5 |
| Trazer | 327.24 | 2.29% | 1 |
| COR | 386.60 | 2.71% | 1 |
| Cardio- diabeto | |||
| Cortel | 724.86 | 5.07% | 17 |
| Rosuless | 596.88 | 4.18% | 15 |
| Bisobis | 203.46 | 1.42% | 5 |
| Obimet* | 613.93 | 4.30% | 18 |
| Sitabite | 283.38 | 1.98% | 24 |
| Dapabite | 181.84 | 1.27% | 17 |
| Pain Management | |||
| Myoril* | 963.56 | 6.75% | 1 |
| GB 29 (part of B- 29) | 459.14 | 3.21% | 8 |
| Etowin | 127.04 | 0.89% | 10 |
| Urology | |||
| Dosin | 269.68 | 1.89% | 9 |
| Alkashot | 130.07 | 0.91% | 3 |
| Tamdosin | 112.97 | 0.79% | 10 |
* Myoril and Obimet mother brands have been reclassified by combining the following brands to the respective brands.
?‚? Myoril: Myoril, Myoril Plus and Myoril Maxx;
?‚? Obimet: Obimet and Triobimet; and
?‚? MAT June 2025 sales for these respective brands are as follows: B29: Rs.1,047.23 million, GB29: Rs.459.14 million, Myoril plus: Rs.624.08 million, Myoril plus: Rs.142.79 million, Myoril maxx: Rs.196.70 million, Obimet: Rs.486.19 million, Triobimet: Rs.127.75 million.
We operate two manufacturing facilities, located in the states of Gujarat and Himachal Pradesh and are in the process of commissioning a hormone manufacturing facility in the state of Gujarat. As of June 30, 2025, our manufacturing facilities were spread over an aggregate of 2.83 hectares and had an aggregate installed capacity for formulations of 1,285.44 million units per annum, with a total of 11 production lines. For details, see " ?€” Description of our Business - Manufacturing Facilities - Production capacity, production volumes and capacity utilization " and " - Description of our Business - Properties " on pages 233 and 242, respectively. Further, we have also made strides towards backward integration in our manufacturing and R&D processes, through our investment in La Chandra, which operates an EU GMP and WHO GMP-certified hormone API manufacturing facility in Banaskantha, Gujarat. Following this investment, La Chandra develops specified APIs and supplies hormone APIs to our Company under a right of first refusal. We have a comprehensive approach towards quality and have adopted streamlined manufacturing procedures across all our facilities aimed towards achieving standardized quality for all our markets and ensuring compliance with regulatory requirements.
We operate two R&D facilities in India, housed within our manufacturing facilities, each of which have been registered with the Department of Scientific and Industrial Research, Ministry of Science and Technology. As of June 30, 2025, we employed 103 employees in our R&D department. Our R&D efforts are presently being deployed across several projects, focused on (i) new formulation development, (ii) achievement of efficiencies in our manufacturing processes, (iii) packaging development, and (iv) process engineering among others.
Our business and operations are led by a qualified, experienced, and entrepreneurial management team with diverse backgrounds and expertise across various fields. We are a first-generation entrepreneurial venture founded by Niravkumar Kirtikumar Mehta, one of our Promoters and our Managing Director and Chief Executive Officer,
and Ankur Kirtikumar Mehta, one of our Promoters and our Joint Managing Director, both of whom have over 20 years of experience in the pharmaceutical industry. They have played a pivotal role in the growth and development of our business and are mentored and guided by Dr. Kirtikumar Laxmidas Mehta, our Promoter, Chairman and Non-Executive Director, who has over 36 years of experience as a medical practitioner. Dr. Kirtikumar Laxmidas Mehtas expertise and leadership have provided invaluable strategic direction to our organization since its incorporation. Our first investment from a private equity fund was in July 2016, and we have benefited from their capital sponsorship and professional expertise, as well as that of ChrysCapital.
Significant Factors Affecting our Results of Operations
Our business, results of operations, financial condition and cash flows have been, and we expect will continue to be, affected by numerous factors, including:
Our product portfolio and product mix by therapeutic area
We have a diversified product portfolio comprising 71 brands with a select range catering to womens healthcare, cardio-diabeto, pain management, urology and other therapeutic areas, as of June 30, 2025. Set out below are details of our domestic sales for each of our key therapeutic areas:
| Addressable Market | MAT June 2025 domestic sales | Market rank for MAT June 2025 | CAGR between MAT June 2022 to MAT June 2025 | IPM CAGR MAT June 2022 - MAT June 2025 | |
| Amount ( Rs. in millions) | % of domestic sales | ||||
| Women\u2019s healthcare 1 | 4,080.26 | 28.56% | 6 | 20.67% | 9.10% |
| Cardio- diabeto 2 | 3,339.96 | 23.38% | 22 | 21.95% | 9.74% |
| Pain management 3 | 1,684.38 | 11.79% | 5 | 19.20% | 12.27% |
| Urology 4 | 646.65 | 4.53% | 9 | 59.56% | 16.75% |
| Others 5 | 4,533.64 | 31.74% | NA | 7.45% | NA |
| Total | 14,284.89 | 100% | 29 | 16.77% | 9.21% |
Note: The Companys addressable market includes sales for selected subgroups mentioned in the CRISIL Intelligence Report.
?‚? The womens healthcare market includes subgroups from gynaecological, cardiac, blood related, anti-diabetic vitamins / minerals / nutrients, gastro intestinal, anti-neoplastics, anti-infectives, pain / analgesics and derma.
?‚? The cardio-diabeto market includes subgroups from anti diabetic, cardiac, blood related, pain / analgesics and hormones.
?‚? The pain-management market includes subgroups from neuro / CNS and pain / analgesics.
?‚? The urology market includes subgroups from urology, sex stimulants / rejuvenators and hormones.
?‚? The others market consists of sales from all the subgroups excluding subgroups mentioned in the above categories.
Source: CRISIL Intelligence Report; see " Industry Overview - Review of competition in the IPM - CORONAs addressable market in key
therapies in the IPM " on page 188
Our core portfolio of 27 "engine" brands contributed to 72.34% of our domestic sales during MAT June 2025 (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Contribution of key mother brands to CORONA sales - Key Observations " on page 194). Our revenue growth is driven by our ability to launch new products, scale up existing brands, and expand our presence in our focused therapeutic areas. Our product mix also affects our profitability, as different products have different margins, pricing, and competitive dynamics. For instance, our chronic segment products have higher margins and lower price sensitivity than our acute segment products. According to the CRISIL Intelligence Report (see " Industry Overview - Review of competition in the IPM - Trend in CORONAs acute-chronic domestic sales " on page 186), the chronic and sub-chronic segment constituted 70.10% of our domestic sales during MAT June 2025, with the acute segment constituting the remaining 29.90%. We aim to increase our share of chronic segment products in our portfolio, as they offer higher growth potential and customer loyalty in the long term.
Government regulations and price controls
We operate in a highly regulated industry and our operations, and our business is subject to various regulations and price controls by the Government of India and other authorities, which may affect our pricing, marketing, distribution, and manufacturing activities. We are required to obtain and maintain a number of statutory and regulatory permits and approvals under central, state and local government rules in India, including those required by pharmaceutical industry regulators for carrying out our business and for our Manufacturing Facilities and R&D centres. For instance, the National Pharmaceutical Pricing Authority (" NPPA ") regulates the prices of certain drugs and formulations under the Drugs (Prices Control) Order, 2013 (" DPCO "), which covers 384 drugs and their formulations.
Changes in the laws and regulations applicable to our business, including the DPCO or the NPPAs interpretation or enforcement of the same may adversely affect our revenue and profitability Changes in the laws and regulations applicable to our business may increase our compliance costs and adversely affect our business, prospects, results of operations and financial condition. See also " Risk Factors - We are subject to extensive government regulation in India and failure to comply with such regulations may result in penalties, criminal sanctions, suspension of our business license, among others, and our business, results of operations, financial condition and cash flows may be adversely affected " on page 58.
Additionally, we are required to comply with various laws and regulations and obtain licenses relating to quality, safety, efficacy, labelling, packaging, advertising, and environmental aspects of our products and operations, which may entail significant costs and liabilities. Such requisite licenses, permits and approvals include local land use permits, manufacturing permits, foreign trade-related permits, labor and employment-related permits, and environmental, health and safety permits. For details, see " Key Regulations and Policies in India " on page 244. Any non-compliance or adverse regulatory action may harm our reputation, business, and financial condition.
Availability and cost of raw materials and third-party sourcing
We depend on various raw materials, such as active pharmaceutical ingredients (APIs), excipients, packaging materials, and consumables, for the production of our products. We source our raw materials from both domestic and international suppliers. The table below sets out our cost of materials consumed for the periods and financial years indicated:
| Three months ended June 30, 2025 | Financial Year | |||||||
| 2025 | 2024 | 2023 | ||||||
| Particulars | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses |
| Cost of materials consumed | 250.72 | 9.06% | 1022.86 | 10.69% | 1,027.33 | 11.95% | 990.95 | 13.11% |
The availability and cost of raw materials may be affected by various factors, such as supply and demand dynamics, quality issues, regulatory changes, currency fluctuations, trade restrictions, natural disasters, pandemics, and geopolitical events, which may disrupt our supply chain, increase our input costs, or affect our product quality. For instance, the COVID-19 pandemic and the consequent lockdowns and travel restrictions have impacted the global supply chain of APIs and other raw materials, especially from China, which is a major source of APIs for the Indian pharmaceutical industry. Any shortage, delay, or increase in the cost of raw materials may adversely affect our production, sales, and profitability. Moreover, we also rely on purchases from third-party manufacturers for certain products, such as injectables, hormones, and nutraceuticals, which accounted for 12.56% and 16.52% of our total expenses during the three months ended June 30, 2025 and the Financial Year 2025, respectively. We have entered into agreements with some of our third-party manufacturers, but we do not have exclusive arrangements with them. Any disruption, termination, or non-performance of our third-party trading arrangements may affect our product availability, quality, and competitiveness.
Our "middle of the pyramid" approach to marketing and sales
Our differentiated strategy of focusing on the middle of the pyramid where we focus on specialist doctors has driven our growth to outpace overall prescription growth in the IPM. By strategically deploying our marketing and distribution personnel across urban and semi-urban areas, we have positioned ourselves to capture value in the middle of the pyramid market segment. Our focus is on high-value specialists and super-specialists who contributed to 75.75% of our prescriptions during MAT June 2025, as compared to 60.96% for the overall IPM during this period (Source: CRISIL Intelligence Report ; see " Industry Overview - Review of competition in the IPM - Specialty wise prescription split and growth for CORONA and IPM " on page 198). Our pan-India marketing and distribution network, supported by a growing field force of 2,671 medical representatives (as of June 30, 2025), enables us to engage with key healthcare professionals and hospitals effectively, further consolidating our presence in the IPM and ensuring deep penetration in our focused therapeutic areas. Also see " Risk Factors - We rely on our field force of 2,671 medical representatives (as of June 30, 2025) to market and distribute our products in India, and any failure to retain, train, motivate or manage them effectively could adversely affect our business, results of operations, financial condition and cash flows " on page 56.
Manufacturing and research and development costs
We operate two manufacturing facilities located at Ahmedabad, Gujarat and Solan, Himachal Pradesh, with a new hormone manufacturing facility at Ahmedabad, Gujarat proposed to be commissioned. As of June 30, 2025, our manufacturing facilities were spread over an aggregate of 2.83 hectares and had an aggregate installed capacity for formulations of 1,285.44 million units per annum, with a total of 11 production lines. We are focused on process excellence and quality, and our Bhayla Manufacturing Facility producing oral solids is EU GMP-certified while our Solan Manufacturing Facility has been approved for WHO GMP. Through our extensive manufacturing capabilities we offer 11 production lines for a variety of drug delivery systems. Set out below is a breakdown of our revenue from operations by manufacturing facility for the periods and financial years indicated:
| Three months ended June 30, 2025 | Financial Year | |||||||
| Location of manufacturing facility | 2025 | 2024 | 2023 | |||||
| ( Rs. in millions) | % of revenue from operations | ( Rs. in millions) | % of revenue from operations | ( Rs. in millions) | % of revenue from operations | ( Rs. in millions) | % of revenue from operations | |
| Bhayla, Ahmedabad, Gujarat | 1,188.32 | 34.29% | 4,178.88 | 34.93% | 2,736.30 | 26.97% | 1,333.01 | 15.08% |
| Solan, Himachal Pradesh | 986.22 | 28.46% | 3,479.04 | 29.08% | 3,809.42 | 37.55% | 4,149.90 | 46.94% |
| Total revenue from operations from manufacturing facilities | 2,174.54 | 62.75% | 7,657.93 | 64.01% | 6,545.72 | 64.52% | 5,482.91 | 62.02% |
Further, we have also made strides towards backward integration in our manufacturing and R&D processes, through our investment in La Chandra, which operates an EU GMP and WHO GMP-certified API manufacturing facility in Gujarat. Following this investment, La Chandra develops specified APIs and supplies hormone APIs to our Company under a right of first refusal. We have a comprehensive approach towards quality and have adopted streamlined manufacturing procedures across all our facilities aimed towards achieving standardized quality for all our markets and ensuring compliance with regulatory requirements.
We operate two R&D facilities in India, housed within our manufacturing facilities, each of which have been registered with the Department of Scientific and Industrial Research, Ministry of Science and Technology. As of June 30, 2025 we employed 103 employees in our R&D department. Our R&D efforts are presently being deployed across several projects, focused on (i) new formulation development, (ii) achievement of efficiencies in our manufacturing processes, (iii) packaging development, and (iv) process engineering among others. The tables below sets out R&D costs which have been capitalized and expensed, in absolute terms and as a percentage of total assets and expenses, respectively, for the periods and years indicated:
| As of June 30, 2025 | As of March 31, | |||||||
| 2025 | 2024 | 2023 | ||||||
| Particulars | Amount ( Rs. in millions) | % of total additions to capital* | Amount ( Rs. in millions) | % of total additions to capital* | Amount ( Rs. in millions) | % of total additions to capital* | Amount ( Rs. in millions) | % of total additions to capital* |
| R&D expenditure - Capex | 1.60 | 0.76% | 33.34 | 3.70% | 55.07 | 1.93% | 68.65 | 7.27% |
* Additions to capital is defined as the sum of additions to plant, property and equipment, intangible assets and capital work in progress (gross) for the specified period or year.
| Three months ended June 30, 2025 | For the Financial Year | |||||||
| 2025 | 2024 | 2023 | ||||||
| Particulars | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses | Amount ( Rs. in millions) | % of total expenses |
| R&D expenditure - Revenue | 48.69 | 1.76% | 118.10 | 1.23% | 89.96 | 1.05% | 47.63 | 0.63% |
Material Accounting Policies
The notes to our Restated Consolidated Financial Information included in this Red Herring Prospectus contain a summary of our material accounting policies. Set forth below is a summary of our most significant accounting policies under Ind AS.
Property, plant and equipment
Property, plant, and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The cost of fixed assets comprises its purchase price, non-refundable taxes and levies, freight, and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing costs attributable to the financing of acquisition or construction of the qualifying fixed assets are capitalized to respective assets when the time taken to put the assets to use is substantial.
Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to us and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period/year in which they are incurred.
Pre-operative expenditure comprising revenue expenses incurred in connection with project implementation during the period up to the commencement of commercial production is treated as part of the project costs and is capitalized. Such expenses are capitalized only if the project to which they relate involves substantial expansion of capacity or upgradation.
Advances paid towards the acquisition of property, plant, and equipment outstanding at each balance sheet date are classified as capital advances under other non-current assets, and the cost of assets not put to use before such date is disclosed under Capital work-in-progress.
Depreciation methods, estimated useful lives
We depreciate property, plant, and equipment over their estimated useful lives using the straight-line method. The estimated useful lives of assets are as follows:
| Property, plant and equipment | Useful life as per Schedule II | Useful life as per Management |
| Computers | 3-6 years | 8 years |
| Electrical Installation | 10 years | 15 years |
| Factory Building | 30 years | 30 years |
| Furniture and Fixtures | 10 years | 15 years |
| Office Equipments | 5 years | 7 years |
| Other than Factory Building | 60 years | 60 years |
| Plant & Machinery | 20 years | 20 years |
| Vehicle | 8 years | 8 years |
Based on our technical experts assessment of useful life, items of property, plant, and equipment are being depreciated over useful lives different from the prescribed useful lives under Schedule II to the Companies Act, 2013. We believe that such estimated useful lives are realistic and reflect a fair approximation of the period over which the assets are likely to be used.
Depreciation on additions to property, plant, and equipment is provided on a pro-rata basis from the date of acquisition. Depreciation on sales or deductions from property, plant, and equipment is provided up to the date preceding the date of sale or deduction, as the case may be. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the Statement of Profit and Loss under Other Income in the case of a gain and included in the Statement of Profit and Loss under Other Expenses in the case of a loss.
Depreciation methods, useful lives, and residual values are reviewed periodically at each financial year-end and adjusted prospectively, as appropriate.
Intangible Assets
Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of intangible assets comprises their purchase price and other taxes (other than those subsequently recoverable from
the tax authorities), and any directly attributable expenditure on making the asset ready for its intended use.
We amortize intangible assets over their estimated useful lives using the straight-line method. The estimated useful lives of intangible assets are as follows:
| Intangible assets | Useful life |
| Brands | 5-10 years |
| Computer Software | 6 years |
Intangible assets with finite lives are assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at each financial year end.
Foreign Currency Transactions
Functional and presentation currency
Items included in the Restated Consolidated Financial Information are measured using the currency of the primary economic environment in which we operate (the functional currency). The Restated Consolidated Financial Information is presented in Indian Rupee (INR), which is our functional and presentation currency.
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 recognized in the Statement of Profit and Loss.
All monetary assets and liabilities in foreign currencies are restated at the period end at the exchange rate prevailing at the year end and the exchange differences are recognized 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.
Fair value measurement
We and our associate measure financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
In the principal market for the asset or liability, or
In the absence of a principal market, in the most advantageous market for the asset or liability accessible to us.
We and our associate use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the Restated Consolidated Financial Information are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 ?€” Quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 ?€” Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
Level 3 ?€” Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
Revenue Recognition
Sale of goods
Revenue is measured based on the transaction price adjusted for discounts and rebates, which is specified in a contract with the customer. Revenue is net of estimated returns and taxes collected from customers.
Revenue from the sale of goods is recognized at the point in time when control is transferred to the customer and it is probable that consideration will be collected. Control of goods is transferred upon the shipment of the goods to the customer or when goods are made available to the customer.
The transaction price is documented on the sales invoice and payment is generally due as per agreed credit terms with the customer.
The consideration can be fixed or variable. Variable consideration is only recognized when it is highly probable that a significant reversal will not occur.
Expiry and breakage sales return is variable consideration that is recognized and recorded based on historical experience, market conditions, and provided for in the year of sale as a reduction from revenue. The methodology and assumptions used to estimate returns are monitored and adjusted regularly in line with trade practices, historical trends, past experience, and projected market conditions.
Export entitlements are recognized as income when the right to receive credit as per the terms of the scheme is established in respect of the exports made and where there is no significant uncertainty regarding the ultimate collection of the relevant export proceeds.
In respect of the above, the amounts received in advance are reflected in the Balance Sheet under "Other Current
and/or Non-current Liabilities" as "Advance from customers".
Rendering of services
License fees revenue is recognized on an accrual basis in accordance with the substance of the relevant agreement (provided that it is probable that economic benefits will flow to us and the amount of revenue can be measured reliably).
Revenue is recognized when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to us, and specific criteria have been met as described below.
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of indirect taxes, trade allowances, rebates, and amounts collected on behalf of third parties and are not recognized in instances where there is uncertainty with regard to ultimate collection. In such cases, revenue is recognized on reasonable certainty of collection.
Interest Income
Interest Income is recognized on the basis of the effective interest method as set out in Ind AS 109, Financial Instruments, and where no significant uncertainty as to measurability or collectability exists.
Other Income
Income in respect of other income is recognized when a reasonable certainty as to its realization exists.
Taxes
Tax expense for the year, comprising current tax and deferred tax, is included in the determination of the net profit and loss for the year.
Current income tax
Current tax is the tax payable on the taxable profit for the period/year, using tax rates enacted or substantially
enacted by the end of the reporting period by the governing taxation laws, and any adjustment to tax payable in respect of previous periods. Current tax assets and liabilities are measured at the amount expected to be recovered or paid to the taxation authorities. Current tax assets and tax liabilities are offset where we have a legally enforceable right to offset and intend either to settle on a net basis, or to realize the asset and settle the liability simultaneously. We periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. We establish provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax
Deferred taxes arising from deductible and taxable temporary differences between the tax base of assets and liabilities and their carrying amount in the Restated Consolidated Financial Information are recognized using substantively enacted tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized.
Deferred tax assets and liabilities are offset when we have a legally enforceable right to do the same.
Current and deferred tax is recognized in the Restated Consolidated Statement of Profit and Loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively.
Leases - as a lessee
At the inception of a contract, we assess whether a contract is or contains a lease. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, we assess whether the contract involves the use of an identified asset, we have a right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use, and we have the right to direct the use of the asset.
At the inception date, a right-of-use asset is recognized at cost, which includes the present value of lease payments adjusted for any payments made on or before the commencement of the lease and initial direct costs, if any. It is subsequently measured at cost less accumulated depreciation, accumulated impairment losses, if any, and adjusted for any remeasurement of the lease liability. The right-of-use asset is depreciated using the straight-line method from the commencement date over the earlier of the useful life of the asset or the lease term. When we have a purchase option available under the lease and the cost of the right-of-use asset reflects that the purchase option will be exercised, the right-of-use asset is depreciated over the useful life of the underlying asset. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in the statement of profit and loss.
At the inception date, a lease liability is recognized at the present value of lease payments that are not made at the commencement of the lease. The lease liability is subsequently measured by adjusting the carrying amount to reflect interest, lease payments, and remeasurement, if any. Lease payments are discounted using the borrowing rate.
We and our associate do not apply Ind AS 116 to leases that have a term of 12 months or less and leases for which the underlying asset is of low value. Lease payments for such leases are recognized as an expense on a straight- line basis over the lease term.
Inventories
Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each product to its present location and condition are accounted for as follows:
Raw materials and packaging materials are valued at the lower of cost and net realizable value. Cost includes
purchase price (excluding those subsequently recoverable by us from the concerned revenue authorities), freight inwards, and other expenditures incurred in bringing such inventories to their present location and condition. In determining the cost, the weighted average cost method is used.
Work in progress, manufactured finished goods, and traded goods are valued at the lower of cost and net realizable value. The cost of work in progress and manufactured finished goods is determined using the absorption costing method and comprises direct material, cost of conversion, and other costs incurred in bringing these inventories to their present location and condition. The cost of traded goods is determined on a weighted average basis.
Store consumables are valued at cost. The cost of store consumables comprises direct material and other costs incurred in bringing these inventories to their present location and condition.
Provision for obsolescence on inventories is considered based on managements estimate of the demand and market for the inventories. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The comparison of cost and net realizable value is made on an item-by-item basis.
Impairment of non-financial assets
We and our associate assess at each year-end whether there is any objective indicator that a non-financial asset or a group of non-financial assets is impaired. If any such indication exists, we estimate the assets recoverable amount and the amount of impairment loss. An impairment loss is calculated as the difference between an assets carrying amount and its recoverable amount. Losses are recognized in the Statement of Profit and Loss and reflected in an allowance account. When there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through the Statement of Profit and Loss.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit").
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 balance sheet date. 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 our control, 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.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks, cash on hand, short-term deposits, and highly liquid investments that are readily convertible into known amounts of cash, which are subject to an insignificant risk of changes in value. Short-term means investments with original maturities/holding periods of three months or less from the date of investment.
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets
Initial recognition and measurement
Financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets (other than financial assets at fair value through profit and loss) are added to or deducted from the fair value of the financial assets, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets at fair value through profit and loss are recognized immediately in profit and loss.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories: at amortized cost; or
at fair value through other comprehensive income; or at fair value through profit and loss.
The classification depends on the entitys business model for managing the financial assets and the contractual
terms of the cash flows.
The classification depends on our business model for managing the financial assets and the contractual terms of the cash flows.
Amortized Cost : Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).
Fair Value Through Other Comprehensive Income (FVOCI) : Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through Other Comprehensive Income (OCI), except for the recognition of impairment gains or losses, interest revenue, and foreign exchange gains and losses which are recognized in the Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in Other Comprehensive Income (OCI) is reclassified from equity to the Statement of Profit and Loss and recognized in other gains/(losses). Interest income from these financial assets is included in other income using the effective interest rate method.
Fair Value Through Profit and Loss (FVTPL) : Assets that do not meet the criteria for amortized cost or Fair Value Through Other Comprehensive Income (FVOCI) are measured at fair value through profit and loss. Interest income from these financial assets is included in other income.
Equity Instruments : All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments that are held for trading and contingent consideration recognized by an acquirer in a business combination to which Ind AS 103 applies are classified as at Fair Value Through Profit and Loss (FVTPL). For all other equity instruments, we may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. We make such an election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.
If we decide to classify an equity instrument as at Fair Value Through Other Comprehensive Income (FVTOCI), then all fair value changes on the instrument, excluding dividends, are recognized in other comprehensive income (OCI). There is no recycling of the amounts from other comprehensive income (OCI) to profit and loss, even on the sale of the investment. However, we may transfer the cumulative gain or loss within equity.
Impairment of financial assets
In accordance with Ind AS 109, Financial Instruments, we and our associate apply the expected credit loss (ECL) model for the measurement and recognition of impairment loss on financial assets that are measured at amortized cost and fair value through other comprehensive income (FVOCI).
For the recognition of impairment loss on financial assets and risk exposure, we and our associate determine whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, a 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, a lifetime expected credit loss (ECL) is used. If in subsequent years, the credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then we revert to recognizing impairment loss allowance based on a 12-month expected credit loss (ECL).
Lifetime expected credit losses (ECL) are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month expected credit loss (ECL) is a portion of the lifetime expected credit loss (ECL) which results from default events that are possible within 12 months after the year- end.
Expected credit loss (ECL) is the difference between all contractual cash flows that are due to us in accordance with the contract and all the cash flows that we expect to receive (i.e., all shortfalls), discounted at the original effective interest rate (EIR). When estimating the cash flows, we are required to consider all contractual terms of the financial instrument (including prepayment, extension, etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, we are required to use the remaining contractual term of the financial instrument.
Expected credit loss (ECL) impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement of profit and loss. In the balance sheet, expected credit loss (ECL) for financial assets measured at amortized cost is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, we do not reduce the impairment allowance from the gross carrying amount.
Investment in Associate
Investment in Associate is measured at cost. In the financial statements, investment in associate is carried at cost. The carrying amount is reduced to recognize any impairment in the value of the investment.
Derecognition of financial assets
A financial asset is derecognized only when:
the rights to receive cash flows from the financial asset is transferred, or
we retain the contractual rights to receive the cash flows of the financial asset but assume a contractual obligation to pay the cash flows to one or more recipients.
Where the financial asset is transferred, the financial asset is derecognized only if substantially all risks and rewards of ownership of the financial asset are transferred. Where we have not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognized.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit and loss and at amortized cost, as appropriate.
All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial Liabilities at Fair Value Through Profit and Loss
Financial liabilities at fair value through profit and loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit and loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged, cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the Restated Consolidated Statement of Profit and Loss as finance costs.
Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency, or bankruptcy of us or the counterparty.
Convertible preference shares
Convertible preference shares are separated into liability and equity components based on the terms of the contract.
On issuance of the convertible preference shares, the fair value of the liability portion of a compulsorily convertible preference share is determined using a market interest rate for an equivalent non-convertible debt. This amount is recorded as a liability on an amortized cost basis. The remainder of the proceeds is attributable to the equity portion of the financial liability. Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the conversion option is not subsequently re-measured.
Transaction costs are apportioned between the liability and equity components of the convertible preference shares based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.
Employee Benefits
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.
Long-term employee benefit obligations
Defined contribution plan
Contribution towards provident fund and Employees State Insurance Scheme is made to the regulatory authorities, where we have no further obligations. Such benefits are classified as Defined Contribution Schemes as we do not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Restated Consolidated Statement of Profit and Loss.
Defined benefit plans
Our and our associates net obligation in respect of an approved gratuity plan, which is a defined benefit plan, is calculated using the projected unit credit method and the same is carried out by a qualified actuary. The current service cost and interest on the net defined benefit liability/(asset) are recognized in the statement of profit and loss. Past service costs are immediately recognized in the statement of profit and loss. Actuarial gains and losses, net of deferred taxes arising from experience adjustments and changes in actuarial assumptions, are recognized in other comprehensive income in the period in which they arise.
Compensated Absences
Our and our associates current policy permits eligible employees to accumulate compensated absences up to a prescribed limit and receive cash in lieu thereof in accordance with the terms of the policy. We measure the expected cost of accumulating compensated absences as the additional amount that we expect to pay as a result of unused entitlement that has accumulated as of the reporting date. The expected cost of these benefits is calculated using the projected unit credit method by a qualified actuary at the reporting date. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the statement of profit and loss in the period in which they arise. The obligations are presented as current liabilities in the balance sheet if we do not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.
Government grants
Government grants are recognized when there is reasonable assurance that the grant will be received and all attached conditions for receiving such a grant have been and will be fulfilled.
Government grants related to assets are recognized as deferred income and charged to the statement of profit and loss on a systematic basis over the expected useful life of the related asset.
Government grants are recognized in the statement of profit and loss on a systematic basis over the period in which we recognize as expenses the related costs for which the grants are intended to compensate. Government grants that are receivable as compensation for expenses already incurred are recognized in the statement of profit and loss in the period in which they become receivable.
Earnings Per Share
Basic earnings per share is calculated by dividing the net profit and loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining our earnings per share are the net profit and 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 and loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Rounding off amounts
The figures have been rounded off to the nearest millions of rupees up to two decimal places. The figure 0.00 wherever stated represents value less than INR 5,000/-.
Measurement of EBITDA
As permitted by the Guidance Note on Division II - IND AS Schedule III to the Companies Act, 2013, we have opted to present earnings before interest (finance cost), tax, depreciation, and amortization as a separate line item on the face of the Restated Consolidated Statement of Profit and Loss for the period/year. We and our associate measure EBITDA on the basis of profit/(loss) from continuing operations and other income. In its measurement, we do not include depreciation and amortization expense, finance costs, and tax expense.
Significant accounting judgments, estimates and assumptions
The preparation of the Restated Consolidated Financial Information requires us to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities, and the accompanying disclosures, including 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.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the year-end date, which 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. We and our associate base our assumptions and estimates on parameters available when the Restated Consolidated Financial Information are prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond our control. Such changes are reflected in the assumptions when they occur.
Taxes
Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
Defined benefit plans (gratuity benefits)
The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, and mortality rates. 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 reporting date.
The principal assumptions are the discount and salary growth rate. The discount rate is based upon the market yields available on government bonds at the accounting date with a term that matches that of liabilities. The salary increase rate takes into account inflation, seniority, promotion, and other relevant factors on a long-term basis.
Fair value measurement
In measuring the fair value of certain assets and liabilities for financial reporting purposes, we use market observable data to the extent available. Where such Level 1 inputs are not available, we engage third-party qualified valuers to establish appropriate valuation techniques and inputs to the model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk, and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Depreciation/ amortization and useful lives of property plant and equipment/ intangible assets
Property, plant, and equipment/intangible assets are depreciated/amortized over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation/amortization to be recorded during any reporting period. The useful lives and residual values are based on our historical experience with similar assets and take into account anticipated technological changes. The depreciation/amortization for future periods is revised if there are significant changes from previous estimates.
Provision related claims for expiry and breakage sales return
Significant judgments are involved in determining the estimated stock lying in the market with product nearing their shelf life and estimates related to provision of likely claims on account of the expiry of such unsold goods
lying with distribution channels.
Allowance for expected credit loss
The expected credit allowance is based on the aging of the days receivables which are past due and the rates derived based on past history of defaults in the provision matrix.
Changes in accounting policies and recent accounting pronouncements
There have been no changes in our accounting policies during the three months ended June 30, 2025 and the Financial Years 2025, 2024 and 2023.
As of the date of this Red Herring Prospectus, there are no recent accounting pronouncements that have had a material effect on our financial condition or results of operations.
Key Components of our Restated Consolidated Statement of Profit and Loss
The key components of our Restated Consolidated Statement of Profit and Loss are described below:
Income
Revenue from operations. Revenue from operations comprises (i) revenue from sale of products; (ii) revenue from sale of services; and (iii) other operating revenues. Revenue from the sale of products comprises revenue from the sale of pharmaceutical formulations. Revenue from sale of services comprises of licensing fees. Other operating revenues primarily comprise revenue from scrap sale and export incentives.
Set out below is a breakdown of our revenue from operations by geography for the periods and financial years indicated:
| Three months ended June 30, 2025 | Financial Year | |||||||
| 2025 | 2024 | 2023 | ||||||
| Particulars | Amount ( Rs. in millions) | % of revenue from operations | Amount ( Rs. in millions) | % of revenue from operations | Amount ( Rs. in millions) | % of revenue from operations | Amount ( Rs. in millions) | % of revenue from operations |
| Revenue from operations \u2013 within India | 3,338.54 | 96.34% | 11,524.56 | 96.33% | 9,802.28 | 96.62% | 8,521.61 | 96.39% |
| Revenue from operations \u2013 outside India | 126.88 | 3.66% | 439.59 | 3.67% | 342.46 | 3.38% | 318.89 | 3.61% |
| Total revenue from operations | 3,465.42 | 100.00% | 11,964.15 | 100.00% | 10,144.74 | 100.00% | 8,840.50 | 100.00% |
Our revenue from operations generated outside India is mainly attributable to the sale of our products in the Asian, Middle East and African markets. Also see " Our Business - Description of our Business - International Business " on page 231.
Other income. Other income primarily comprises interest income from fixed deposits and security deposits, income from sale of investments, gain on foreign exchange fluctuations, liabilities written back and miscellaneous income.
Expenses
Expenses comprise cost of materials consumed, purchases of stock-in-trade, changes in inventories of finished goods, stock-in-trade and work-in-progress, employee benefits expense, and other expenses.
Cost of materials consumed . Cost of materials consumed comprises costs from consumption of raw materials we use to manufacture our pharmaceutical formulations and consumption of packing materials.
Purchases of stock-in-trade. Purchases of stock-in-trade relates to costs incurred for the pharmaceutical
formulation products that we procure from other pharmaceutical companies, as well as purchases of in-licensed formulation products.
Changes in inventories of finished goods, stock-in-trade and work-in-progress. Changes in inventories of finished goods, work-in-progress and stock-in-trade comprises net increases or decreases in stock of finished goods, work- in-progress formulations, and stock-in-trade.
Employee benefits expense. Employee benefits expense primarily comprises salaries, wages, bonus and other allowances. It also includes contribution to provident fund and employees state insurance, gratuity expenses, and staff welfare expenses.
Other expenses. The largest components of other expenses include expenses relating to business promotion, legal and professional charges, travel and conveyance, representative expenses, testing charges, power and fuel, freight and forwarding, commission to carrying and forwarding agents and distributors, corporate social responsibility expense, repairs and maintenance and miscellaneous expenses.
Finance costs
Finance costs primarily comprise interest expense on term loans, overdraft against fixed deposits, trade deposits and compulsory convertible non-cumulative preference shares, finance charges payable under finance leases and other borrowing costs.
Depreciation and amortisation expense
Depreciation and amortisation expense relate to depreciation of property, plant and equipment, depreciation on right-of-use assets and amortisation of intangible assets. Intangible assets include brands acquired, product licensing rights and software licenses.
Tax Expense
Tax expense consists of current tax, deferred tax and adjustment of tax relating to earlier periods.
Our Results of Operations
Set out below is select financial information from our Restated Consolidated Statement of Profit and Loss for the three months ended June 30, 2025 and the Financial Years 2025, 2024 and 2023, the components of which are also expressed as a percentage of our total income for such period/years:
| Particulars | Three months ended June 30, 2025 | |
| ( Rs. in millions) | (% of total income) | |
| INCOME | ||
| Revenue from operations | 3,465.42 | 99.42% |
| Other income | 20.17 | 0.58% |
| Total income (I) | 3,485.59 | 100.00% |
| EXPENSES | ||
| Cost of materials consumed | 250.72 | 7.19% |
| Purchases of Stock-in- trade | 347.66 | 9.97% |
| Changes in inventories of finished goods, stock-in-trade and work-in-progress | 59.42 | 1.70% |
| Employee benefits expense | 974.41 | 27.96% |
| Other expenses | 1,135.42 | 32.57% |
| Total expenses (II) | 2,767.63 | 79.40% |
| Earnings Before Interest, Tax, Depreciation & Amortization (I-II) (EBITDA) | 717.96 | 20.60% |
| Finance costs | 19.88 | 0.57% |
| Depreciation and amortization expenses | 89.18 | 2.56% |
| Profit before tax and share of profit of Associates | 608.90 | 17.47% |
| Share of Profit of Associates (net of tax) | (1.97) | (0.06%) |
| Profit before tax | 606.93 | 17.41% |
| TAX EXPENSE | ||
| Current tax expense | 151.91 | 4.36% |
| (Excess) provision for tax relating to earlier periods | (8.86) | (0.25%) |
| Particulars | Three months ended June 30, 2025 | |
| ( Rs. in millions) | (% of total income) | |
| Deferred tax expense / (income) | 1.92 | 0.05% |
| Total tax expense | 144.97 | 4.16% |
| Profit after tax for the period | 461.96 | 13.25% |
Three months ended June 30, 2025
Total income : Total income was Rs.3,485.59 million for the three months ended June 30, 2025 primarily attributable
to revenue from operations and other income.
Revenue from operations : Revenue from operations was Rs.3,465.42 million for the three months ended June 30, 2025, primarily attributable from sales of products of Rs.3,459.68 million for the three months ended June 30, 2025. Revenue from sale of products comprised (i) sales from our India business of Rs.3,338.54 million for the three months ended June 30, 2025, primarily driven by volumes of sales across our therapeutic areas, particularly in our womens healthcare, cardio-diabeto and pain management therapeutic areas; and (ii) sales from outside India of
Rs.126.88 million for the three months ended June 30, 2025, primarily driven by volumes from major jurisdictions
such as the United Arab Emirates, Kenya and Venezuela.
Other income : Other income was Rs.20.17 million for the three months ended June 30, 2025, primarily attributable to (i) interest income on fixed deposits of Rs.14.49 million in the three months ended June 30, 2025; and (ii) miscellaneous income of Rs.3.30 million in the three months ended June 30, 2025.
Total expenses : Total expenses was Rs.2,767.63 million for the three months ended June 30, 2025, primarily attributable to cost of materials consumed, purchases of stock-in-trade, changes in inventories of finished goods and work-in-progress, employee benefits expense, and other expenses.
Cost of materials consumed : Cost of materials consumed was Rs.250.72 million in the three months ended June 30, 2025, primarily attributable to (i) raw and packing material inventories of Rs.312.23 million for the three months ended June 30, 2025 at the beginning of period; and (ii) raw and packing material inventories of Rs.263.81 million at the end of the period.
Purchases of stock-in-trade : Purchases of stock-in-trade were Rs.347.66 million in the three months ended June 30, 2025, consistent with our sales of products and inventory.
Changes in inventories of finished goods, stock-in-trade and work-in-progress : The changes in our inventories of finished goods, stock-in-trade, and work-in-progress of Rs.59.42 million during the three months ended June 30, 2025. Our inventories at the beginning of the period were Rs.978.10 million, comprising (i) finished goods of
Rs.328.38 million, (ii) stock-in-trade of Rs.557.54 million, and (iii) work-in-progress of Rs.92.18 million. This was partially offset by our inventories at the end of the period, which were Rs.918.68 million, comprising (i) finished goods of Rs.315.17 million, (ii) stock-in-trade including goods in transit of Rs.520.65 million, and (iii) work-in- progress of Rs.82.86 million.
Employee benefits expense : Employee benefits expense was Rs.974.41 million for the three months ended June 30, 2025, primarily attributable to the number of our employees to 4,573 as of June 30, 2025. This comprised of (i) salaries, wages, bonus and other allowances of Rs.926.38 million; (ii) contribution to provident fund and ESI of
Rs.26.31 million; (iii) staff welfare expenses of Rs.14.00 million; any (iv) gratuity expenses of Rs.7.72 million.
Other expenses : Other expenses were Rs.1,135.42 million, representing 32.57% of total income for the three months ended June 30, 2025. Legal and professional charges amounted to Rs.394.33 million, primarily attributable to advisory and consultancy-related activities. Other key components of other expenses included: (i) business promotion expenses of Rs.262.12 million, primarily attributable to marketing and promotional activities; (ii) representative expenses of Rs.153.17 million, attributable to the number of field staff; (iii) travel and conveyance expenses of Rs.118.79 million; (iv) sales commission to CFAs and distributors of Rs.52.89 million, attributable to sales of our products; (v) testing charges of Rs.42.92 million, linked to production volumes; (vi) printing and stationery expenses of Rs.26.23 million; (vii) freight and forwarding expenses of Rs.18.63 million, attributable to sales of our products; and (viii) power and fuel expenses of Rs.15.94 million.
Finance costs : Finance costs were Rs.19.88 million in the three months ended June 30, 2025, primarily attributable to (i) interest on term loan of Rs.9.69 million, reflecting repayment of a term loan; (ii) interest on overdraft against fixed deposits of Rs.4.21 million; and (iii) other borrowing costs to Rs.0.51 million, attributable to bank charges.
Depreciation and amortisation expenses : Depreciation and amortisation expenses were Rs.89.18 million for the three months ended June 30, 2025, primarily attributable to: (i) amortization on intangible assets of Rs.52.20 million, primarily on account of the acquisition of the "Myoril" brand; and (ii) depreciation on property, plant and equipment of Rs.36.98 million.
Share of Loss of Associates (net of tax) : Our share of loss of associates (net of tax) was Rs.1.97 million in the three months ended June 30, 2025.
Tax expenses : Total tax expenses were Rs.144.97 million for the three months ended June 30, 2025, primarily attributable to profits earned during the period, partially offset by a decrease in tax arising from an excess provision relating to earlier periods of Rs.8.86 million. For the three months ended June 30, 2025, we recorded current tax expense of Rs.151.91 million and deferred tax expense of Rs.1.92 million.
Profit after tax for the period : As a result of the foregoing, our profit after tax for the period of Rs.461.96 million
for the three months ended June 30, 2025.
| Financial Year | ||||||
| Particulars | 2025 | 2024 | 2023 | |||
| ( Rs. in millions) | (% of total income) | ( Rs. in millions) | (% of total income) | ( Rs. in millions) | (% of total income) | |
| INCOME | ||||||
| Revenue from operations | 11,964.15 | 99.51% | 10,144.74 | 99.37% | 8,840.50 | 99.21% |
| Other income | 59.38 | 0.49% | 64.57 | 0.63% | 70.51 | 0.79% |
| Total income (I) | 12,023.53 | 100.00% | 10,209.31 | 100.00% | 8,911.01 | 100.00% |
| EXPENSES | ||||||
| Cost of materials consumed | 1,022.86 | 8.51% | 1,027.33 | 10.06% | 990.95 | 11.12% |
| Purchases of Stock-in- trade | 1,579.68 | 13.14% | 1,248.73 | 12.23% | 1,263.68 | 14.18% |
| Changes in inventories of finished goods, stock-in-trade and work-in- progress | (237.43) | (1.97%) | (7.78) | (0.08%) | (145.09) | (1.63%) |
| Employee benefits expense | 3,461.42 | 28.79% | 2,953.67 | 28.93% | 2,547.71 | 28.59% |
| Other expenses | 3,737.87 | 31.09% | 3,375.46 | 33.06% | 2,903.46 | 32.58% |
| Total expenses (II) | 9,564.40 | 79.55% | 8,597.41 | 84.21% | 7,560.71 | 84.85% |
| Earnings Before Interest, Tax, Depreciation & Amortization (I- II) (EBITDA) | 2,459.13 | 20.45% | 1,611.90 | 15.79% | 1,350.30 | 15.15% |
| Finance costs | 106.05 | 0.88% | 144.37 | 1.41% | 42.68 | 0.48% |
| Depreciation and amortization expenses | 371.60 | 3.09% | 282.78 | 2.77% | 201.03 | 2.26% |
| Profit before tax and share of profit of Associates | 1,981.48 | 16.48% | 1,184.75 | 11.60% | 1,106.59 | 12.42% |
| Share of Profit of Associates (net of tax) | 3.85 | 0.03% | 0.06 | 0.00% | 2.28 | 0.03% |
| Profit before tax | 1,985.33 | 16.51% | 1,184.81 | 11.61% | 1,108.87 | 12.44% |
| TAX EXPENSE | ||||||
| Current tax expense | 455.49 | 3.79% | 223.96 | 2.19% | 262.75 | 2.95% |
| (Excess) provision for tax relating to earlier periods | (7.51) | (0.06%) | (35.19) | (0.34%) | 0.00 | 0.00% |
| Deferred tax expense / (income) | 43.01 | 0.36% | 91.01 | 0.89% | (3.17) | (0.04%) |
| Total tax expense | 490.99 | 4.08% | 279.78 | 2.74% | 259.58 | 2.91% |
| Profit/(loss) after tax for the year | 1,494.34 | 12.43% | 905.03 | 8.86% | 849.29 | 9.53% |
Financial Year 2025 compared to Financial Year 2024
Total income : Total income increased by 17.77% to Rs.12,023.53 million for the Financial Year 2025 from
Rs.10,209.31 million for the Financial Year 2024 primarily due to an increase in revenue from operations.
Revenue from operations : Revenue from operations increased by 17.93% to Rs.11,964.15 million for the Financial Year 2025 from Rs.10,144.74 million for the Financial Year 2024 primarily due to increases in revenue from sales
of products to Rs.11,945.27 million for the Financial Year 2025 from Rs.10,125.93 million for the Financial Year 2024. The increase in revenue from sale of products was attributable to (i) a 17.57% increase in sales from our India business to Rs.11,524.56 million for the Financial Year 2025 from Rs.9,802.28 million for the Financial Year 2024, primarily driven by higher volumes of sales across our therapeutic areas, and particularly in our womens healthcare, cardio-diabeto and pain management therapeutic areas; and (ii) a 28.36% increase in sales from outside India to Rs.439.59 million for the Financial Year 2025 from Rs.342.46 million for the Financial Year 2024, primarily driven by higher volumes from major jurisdictions such as the United Arab Emirates, Kenya and Venezuela.
Other income : Other income decreased by 8.04% to Rs.59.38 million for the Financial Year 2025 from Rs.64.57 million for the Financial Year 2024 primarily due to decreases in (i) interest income on fixed deposits to Rs.43.88 million in the Financial Year 2025 from Rs.46.39 million in the Financial Year 2024; and (ii) income from sale of investments (mutual funds) to nil in the Financial Year 2025 from Rs.2.42 million in the Financial Year 2024.
Total expenses : Total expenses increased by 11.25% to Rs.9,564.40 million for the Financial Year 2025 from
Rs.8,597.41 million for the Financial Year 2024 primarily due to increases in purchases of stock-in-trade, employee benefits expense, and other expenses; partially off-set by changes in inventories of finished goods, stock-in-trade and work-in-progress.
Cost of materials consumed : Cost of materials consumed decreased by 0.44% to Rs.1,022.86 million in the Financial Year 2025 from Rs.1,027.33 million in the Financial Year 2024 primarily due to a decrease in raw material and packing material inventory at the beginning of period to Rs.241.17 million for the Financial Year 2025 from Rs.320.45 million for the Financial Year 2024 and an increase in raw material and packing material inventory at the end of the period to Rs.312.23 million for the Financial Year 2025 from Rs.241.17 million for the Financial Year 2024. This was due to decrease in raw material prices and favourable product mix coupled with new product launches.
Purchases of stock-in-trade : Purchases of stock-in-trade increased by 26.50% to Rs.1,579.68 million in the Financial Year 2025 from Rs.1,248.73 million in the Financial Year 2024, consistent with the increase in our sales of products and inventory.
Changes in inventories of finished goods, stock-in-trade and work-in-progress : We experienced a net increase in our inventories of finished goods, stock-in-trade, and work-in-progress of Rs.237.43 million during the Financial Year 2025. Our inventories at the beginning of the period were Rs.740.67 million, comprising (i) finished goods of
Rs.320.66 million, (ii) stock-in-trade of Rs.354.77 million, and (iii) work-in-progress of Rs.65.24 million. This was partially offset by our inventories at the end of the period, which were Rs.978.10 million, comprising (i) finished goods of Rs.328.38 million, (ii) stock-in-trade including goods in transit of Rs.557.54 million, and (iii) work-in- progress of Rs.92.18 million.
In comparison, we experienced a net increase of Rs.7.78 million in our inventories of finished goods, stock-in-trade, and work-in-progress during the Financial Year 2024. Our inventories at the beginning of the period were Rs.732.89 million, comprising (i) finished goods of Rs.299.79 million, (ii) stock-in-trade of Rs.374.42 million, and (iii) work- in-progress of Rs.58.68 million. This was partially offset by our inventories at the end of the period, which were
Rs.740.67 million, comprising (i) finished goods of Rs.320.66 million, (ii) stock-in-trade of Rs.354.77 million, and (iii)
work-in-progress of Rs.65.24 million.
Employee benefits expense : Employee benefits expense increased by 17.19% to Rs.3,461.42 million for the Financial Year 2025 from Rs.2,953.67 million for the Financial Year 2024, primarily due to an increase in the number of our employees to 4,508 as of March 31, 2025 from 4,255 as of March 31, 2024. This comprised increases in (i) salaries, wages, bonus and other allowances to Rs.3,281.90 million from Rs.2,802.74 million, primarily on account of annual salary increments to employees and increases in sales incentives; (ii) staff welfare expenses to Rs.51.99 million from Rs.35.97 million; (iii) gratuity expenses to Rs.25.49 million from Rs.18.51 million; and (iv) contribution to provident fund and ESI to Rs.102.04 million from Rs.96.45 million.
Other expenses : Other expenses increased by 10.74% to Rs.3,737.87 million for the financial year 2025 from Rs.3,375.46 million for the Financial Year 2024. Legal and professional charges increased to Rs.1,179.59 million from Rs.986.56 million primarily on account of advisory and consultant related activities. Other key components of our other expenses that increased were (i) business promotion expenses, to Rs.1,045.36 million from Rs.903.01 million, primarily on account of increase in marketing and promotional activities; (ii) representative expenses to Rs.546.22 million from Rs.504.70 million, primarily on account of increase in the number of field staff; (iii) sale commission to CFA and distributors expenses, to Rs.187.63 million from Rs.167.24 million, primarily on account of increased sales of our products; (iv) freight and forwarding, to Rs.66.20 million from Rs.60.07 million, consistent with
the increase in our sales of products; (v) travel and conveyance expenses, to Rs.276.66 million from Rs.227.79 million, primarily due to an increase in business travel activities and employee head count; and (vi) testing charges, to Rs.116.18 million from Rs.82.07 million, primarily on account of higher production volumes. These increases were partially offset by decreases in our (i) insurance expenses, to Rs.14.61 million from Rs.22.33 million; (ii) loss on sale/disposal of fixed assets, to Rs.7.05 million from Rs.12.05 million; (iii) printing and stationery expenses, to Rs.80.26 million from Rs.89.62 million; and (iv) repair to building expenses, to Rs.0.66 million from Rs.4.44 million.
Finance costs : Finance costs decreased by 26.54% to Rs.106.05 million in the Financial Year 2025 from Rs.144.37 million in the Financial Year 2024 primarily due to decreases in (i) interest on term loan to Rs.61.66 million from
Rs.101.07 million, primarily on account of the repayment of a term loan; and (ii) other borrowing costs to Rs.2.46 million from Rs.5.56 million, primarily on account of decrease in loan processing charges, which was partially offset by an increase in interest on overdraft against fixed deposits to Rs.18.85 million during the Financial Year 2025 from Rs.13.88 million during the Financial Year 2024.
Depreciation and amortisation expense : Depreciation and amortisation expense increased by 31.41% to Rs.371.60 million for the Financial Year 2025 from Rs.282.78 million for the Financial Year 2024 primarily due to increases in (i) amortization on the intangible assets to Rs.217.71 million from Rs.153.12 million, primarily on account of the acquisition of the Myoril brand; and (ii) depreciation on property, plant and equipment to Rs.153.89 million from
Rs.129.66 million.
Share of Profit of Associates (net of tax) : Our share of profit of associates (net of tax) increased to Rs.3.85 million in the Financial Year 2025 from Rs.0.06 million in the Financial Year 2024.
Tax expenses : Total tax expenses increased by 75.49% to Rs.490.99 million for the Financial Year 2025 from
Rs.279.78 million for the Financial Year 2024, primarily due to higher profits earned during the year, this increase was offset by decrease in tax on account of the excess provision for tax relating to earlier periods of Rs.7.51 million. For the Financial Year 2025, we had a current tax expense of Rs.455.49 million and a deferred tax expense of Rs.43.01 million. For the Financial Year 2024, we had a current tax expense of Rs.223.96 million and a deferred tax expense of Rs.91.01 million. Our effective tax rate (which represents income tax expense for continuing operations expressed as a percentage of profit from continuing operations before tax for the relevant period) was 24.73% and 23.61% for the Financial Year 2025 and 2024, respectively.
Profit after tax for the period : As a result of the foregoing, our profit after tax for the period increased by 65.11%
to Rs.1,494.34 million for the Financial Year 2025 from Rs.905.03 million for the Financial Year 2024.
Financial Year 2024 compared to Financial Year 2023
Total income : Total income increased by 14.57% to Rs.10,209.31 million for the Financial Year 2024 from
Rs.8,911.01 million for the Financial Year 2023 primarily due to increases in revenue from operations.
Revenue from operations : Revenue from operations increased by 14.75% to Rs.10,144.74 million for the Financial Year 2024 from Rs.8,840.50 million for the Financial Year 2023 primarily due to increases in revenue from sales of products to Rs.10,125.93 million for the Financial Year 2024 from Rs.8,821.60 million for the Financial Year 2023. The increase in revenue from sale of products was attributable to (i) a 15.03% increase in sales in India to
Rs.9,802.28 million for the Financial Year 2024 from Rs.8,521.61 million for the Financial Year 2023, primarily driven by higher volumes of sales, particularly in our womens healthcare, metabolic disorder and pain management therapeutic areas; and (ii) a 7.39% increase in sales outside of India to Rs.342.46 million for the Financial Year 2024 from Rs.318.89 million for the Financial Year 2023, primarily driven by higher volumes; and
(ii) export benefit to Rs.7.57 million from Rs.4.89 million, primarily on account of higher export benefits.
Other income : Other income decreased by 8.42% to Rs.64.57 million for the Financial Year 2024 from Rs.70.51 million for the Financial Year 2023 primarily due to decreases in (i) interest income on fixed deposits to Rs.46.39 million for the Financial Year 2024 from Rs.59.56 million for the Financial Year 2023, primarily on account of decreases in investments in fixed deposit during the Financial Year 2024; and (ii) net gain on foreign exchange fluctuation to Rs.4.87 million from Rs.5.62 million. This was partially offset by increases in (i) miscellaneous income to Rs.7.03 million from Rs.2.12 million, primarily on account of claims towards marine insurance; (ii) expected credit loss written back to Rs.1.53 million from nil; (iii) liabilities written back to Rs.1.93 million from Rs.0.56 million; (iv) income from sale of investments (mutual funds) to Rs.2.42 million from Rs.1.62 million; and (v) interest income on security deposit to Rs.0.26 million from Rs.0.19 million.
Total expenses : Total expenses increased by 13.71% to Rs.8,597.41 million for the Financial Year 2024 from
Rs.7,560.71 million for the Financial Year 2023 primarily due to increases in cost of materials consumed, changes in inventories of finished goods, stock-in-trade and work-in-progress, employee benefits expense, and other expenses; partially off-set by purchases of stock-in-trade.
Cost of materials consumed : Cost of materials consumed increased by 3.67% to Rs.1,027.33 million in the Financial Year 2024 from Rs.990.95 million in the Financial Year 2023 primarily due to (i) increase in inventory at the beginning of period to Rs.320.45 million from Rs.151.67 million; (ii) decrease in purchases of inventory to Rs.948.05 million from Rs.1,159.73 million, primarily on account of availability of excess inventory at the end of Financial Year 2023; and (iii) increase in inventory at the end of the period to Rs.241.17 million from Rs.320.45 million, primarily on account of purchase of inventory in excess during the Financial Year 2024.
Purchases of stock-in-trade : Purchases of stock-in-trade decreased by 1.18% to Rs.1,248.73 million in the Financial Year 2024 from Rs.1,263.68 million in the Financial Year 2023 which was mainly attributable to changes in our product mix.
Changes in inventories of finished goods, stock-in-trade and work-in-progress : We experienced a net increase in our inventories of finished goods, stock-in-trade, and work-in-progress of Rs.7.78 million during the Financial Year 2024. Our inventories at the beginning of the period were Rs.732.89 million, comprising (i) finished goods of
Rs.299.79 million, (ii) stock-in-trade of Rs.374.42 million, and (iii) work-in-progress of Rs.58.68 million. This was partially offset by our inventories at the end of the period, which were Rs.740.67 million, comprising (i) finished goods of Rs.320.66 million, (ii) stock-in-trade of Rs.354.77 million, and (iii) work-in-progress of Rs.65.24 million.
In comparison, we experienced a net increase of Rs.145.09 million in our inventories of finished goods, stock-in- trade, and work-in-progress during the Financial Year 2023. Our inventories at the beginning of the period were
Rs.587.80 million, comprising (i) finished goods of Rs.270.21 million, and (ii) stock-in-trade of Rs.317.59 million. This was partially offset by our inventories at the end of the period, which were Rs.732.89 million, comprising (i) finished goods of Rs.299.79 million, (ii) stock-in-trade of Rs.374.42 million, and (iii) work-in-progress of Rs.58.68 million.
Employee benefits expense : Employee benefits expense increased by 15.93% to Rs.2,953.67 million for the Financial Year 2024 from Rs.2,547.71 million for the Financial Year 2023, primarily due to increases in employee headcount to 4,255 as of March 31, 2024 from 3,886 as of March 31, 2023. This comprised increases in (i) salaries, wages, bonus and other allowances to Rs.2,802.74 million from Rs.2,416.75 million, primarily on account of annual increase in salaries and wages, increase in number of employees and sales incentives; (ii) staff welfare expenses to Rs.35.97 million from Rs.23.32 million; and (iii) contribution to provident fund and ESI to Rs.96.45 million from
Rs.88.85 million.
Other expenses : Other expenses increased by 16.26% to Rs.3,375.46 million for the Financial Year 2024 from Rs.2,903.46 million for the Financial Year 2023. Legal and professional charges increased to Rs.986.56 million from Rs.875.81 million primarily on account of advisory and consultant related activities. Other key components of our other expenses that increased were (i) donation, to Rs.100.00 million (as a one-off expense) from nil in the previous year; (ii) business promotion expenses, to Rs.903.01 million from Rs.850.41 million, primarily on account of increase in marketing and promotional activities; (iii) representative expenses, to Rs.504.70 million from
Rs.465.30 million, primarily on account of an increase in the number of field staff; (iv) travel and conveyance expenses, to Rs.227.79 million from Rs.204.69 million, primarily due to an increase in business travel activities and employee head count; (v) testing charges, to Rs.82.07 million from Rs.61.69 million; and (vi) sale commission to CFA and distributors expenses, to Rs.167.24 million from Rs.148.09 million, primarily on account of increased sales of our products. These increases were partially offset by decreases in our (i) freight and forwarding expenses, to Rs.60.07 million from Rs.67.21 million, which was mainly attributable to change in product mix; and (ii) training expenses, to Rs.13.20 million from Rs.15.97 million.
Finance costs : Finance costs increased significantly to Rs.144.37 million in the Financial Year 2024 from Rs.42.68
million in the Financial Year 2023 primarily due to increases in (i) interest on term loan to Rs.101.07 million from
Rs.2.32 million, primarily on account of increased borrowings availed for the acquisition of Myoril brand; (ii) finance charges payable under finance leases to Rs.23.86 million from Rs.15.43 million, primarily on account of change in lease arrangements; and (iii) other borrowing costs to Rs.5.56 million from Rs.3.40 million. These increases were partially offset by decreases in interest on overdraft against fixed deposits to Rs.13.88 million during the Financial Year 2024 from Rs.20.99 million during the Financial Year 2023.
Depreciation and amortisation expense : Depreciation and amortisation expense increased by 40.67% to Rs.282.78 million for the Financial Year 2024 from Rs.201.03 million for the Financial Year 2023 primarily due to increases in (i) amortization on intangible assets to Rs.153.12 million from Rs.90.73 million, primarily on account of the acquisition of Myoril brand; and (ii) depreciation on property, plant and equipment to Rs.129.66 million from
Rs.110.30 million.
Share of Profit of Associates (net of tax) : Share of Profit of Associates (net of tax) decreased to Rs.0.06 million in the Financial Year 2024 from Rs.2.28 million in the Financial Year 2023.
Tax expenses : Total tax expenses increased by 7.78% to Rs.279.78 million for the Financial Year 2024 from Rs.259.58 million for the Financial Year 2023, primarily due to higher profits earned during the period, this increase was offset by decrease in tax on account of the excess provision for tax relating to earlier periods of Rs.35.19 million. For the Financial Year 2024, we had a current tax expense of Rs.223.96 million and a deferred tax expense of Rs.91.01 million. For the Financial Year 2023, we had a current tax expense of Rs.262.75 million and a deferred tax income of Rs.3.17 million. Our effective tax rate (which represents income tax expense for continuing operations expressed as a percentage of profit from continuing operations before tax for the relevant period) was 23.61% and 23.41% for the Financial Year 2024 and 2023, respectively.
Profit after tax for the year : As a result of the foregoing, our profit after tax for the year increased by 6.56% to
Rs.905.03 million for the Financial Year 2024 from Rs.849.29 million for the Financial Year 2023.
Liquidity and Capital Resources
Our primary source of liquidity is cash generated from operations. As of June 30, 2025, we had cash and cash
equivalents of Rs.23.89 million and bank balances other than cash and cash equivalents of Rs.1,162.17 million.
Our financing requirements are primarily for working capital and investments in our business such as capital expenditures. We expect that cash flow from revenue from operations will continue to be our principal source of cash in the long-term. We evaluate our funding requirements periodically in light of our net cash flow from operating activities, the requirements of our business and operations, and potential acquisition opportunities.
Cash Flows
The following table summarizes our cash flows data for the three months ended June 30, 2025 and the Financial Years 2025, 2024 and 2023:
| Three months ended June 30, 2025 | Financial Year | |||
| Particulars | 2025 | 2024 | 2023 | |
| ( Rs. in millions) | ||||
| Net cash generated from operating activities (A) | 253.67 | 1,904.96 | 1,567.58 | 1,027.00 |
| Net cash (used in) investing activities (B) | (263.60) | (838.40) | (2,666.43) | (502.45) |
| Net cash (used in) / generated from financing activities (C) | 1.53 | (1,065.89) | 985.45 | (447.47) |
| Net increase / (decrease) in cash and cash equivalents (A+B+C) | (8.40) | 0.67 | (113.40) | 77.08 |
| Effect of exchange differences on restatement of foreign currency cash and cash equivalents* | 0.06 | (0.00) | 0.02 | (0.38) |
| Cash and cash equivalents at the beginning of the period/year | 32.23 | 31.56 | 144.94 | 68.24 |
| Cash and cash equivalents at the end of the period/year | 23.89 | 32.23 | 31.56 | 144.94 |
* Effect of exchange differences on restatement of foreign currency cash and cash equivalents for the Financial Year ended March 31, 2025
represents amounting Rs.2,478.
Operating activities
Net cash generated from operating activities was Rs.253.67 million in the three months ended June 30, 2025. Our profit before tax of Rs.606.93 million was adjusted for non-cash and non-operating items. These primarily included depreciation and amortisation expense of Rs.89.18 million, provision for expiry and breakage sales return of Rs.20.75 million, finance costs of Rs.19.88 million, loss on disposal of fixed assets of Rs.1.69 million, share of loss from associate of Rs.1.97 million, and provision for expected credit loss of Rs.0.56 million. Offsetting these were interest
income of Rs.14.57 million, provision for inventory obsolescence of Rs.6.07 million, net unrealised exchange gain of
Rs.1.32 million, fair valuation adjustments of investments designated as fair value through profit and loss (FVTPL) of Rs.0.13 million, and liabilities written back of Rs.0.11 million. This was further adjusted for working capital changes, which comprised (i) adjustments for changes in our operating assets, which primarily consisted of an increase in trade receivables of Rs.325.27 million and an increase in other financial assets of Rs.79.12 million, partially offset by a decrease in inventories of Rs.110.10 million, a decrease in other current assets of Rs.86.52 million, and a decrease in non-current assets of Rs.0.23 million; (ii) adjustments for changes in our operating liabilities, which primarily consisted of an increase in other current liabilities of Rs.31.73 million, an increase in provisions of Rs.11.88 million, and an increase in other financial liabilities of Rs.5.34 million. These were offset by a decrease in loans of
Rs.1.73 million and a decrease in trade payables of Rs.245.24 million. As a result of these adjustments and movements, cash generated from operations for the three months ended June 30, 2025 was Rs.316.87 million, before adjusting for Rs.63.20 million of income taxes paid.
Net cash generated from operating activities was Rs.1,904.96 million in the financial year 2025. We had a profit before tax of Rs.1,985.33 million for the financial year 2025, which was primarily adjusted for increases in depreciation and amortisation expense of Rs.371.60 million, finance costs of Rs.106.05 million, provision for expiry and breakage sales return of Rs.65.87 million, provision for inventory obsolescence of Rs.22.54 million, loss on sale/disposal of fixed assets of Rs.7.05 million and bad debts written off of Rs.0.64 million. These were partially offset by interest income of Rs.44.18 million, net unrealized exchange gain of Rs.0.49 million, share of profit from associate of Rs.3.85 million, provision for expected credit loss of Rs.0.11 million, liabilities written back of Rs.1.92 million, and fair valuation adjustments of investments designated as fair value through profit & loss (FVTPL) of Rs.0.20 million. This was further adjusted for working capital changes, which comprised (i) adjustments for changes in our operating assets, which primarily consisted of an increase in trade receivables of Rs.183.58 million, an increase in inventories of Rs.333.87 million, an increase in other financial assets of Rs.27.69 million, a decrease in other current assets of Rs.25.45 million, and a decrease in non-current assets of Rs.1.03 million; and (ii) adjustments for changes in our operating liabilities, which primarily consisted of an increase in trade payables of Rs.294.20 million, an increase in provisions of Rs.27.02 million, an increase in other financial liabilities of Rs.10.87 million, an increase in other current liabilities of Rs.15.29 million, and a decrease in loans of Rs.0.67 million. As a result, cash generated from operations in the financial year 2025 was Rs.2,337.72 million, before adjusting for Rs.432.76 million of income taxes paid.
Net cash generated from operating activities was Rs.1,567.58 million in the Financial Year 2024. We had a profit before tax of Rs.1,184.81 million for the Financial Year 2024, which was primarily adjusted for depreciation and amortization expenses of Rs.282.78 million, finance costs of Rs.144.37 million, provision for expiry and breakage sales return of Rs.77.94 million, loss on sale/disposal of fixed assets of Rs.12.05 million, provision for inventory obsolescence of Rs.5.85 million, net unrealized exchange gain of Rs.1.80 million, bad debts written off of Rs.0.21 million. These were partially offset by interest income of Rs.46.65 million, income from sale of investments (mutual funds) of Rs.2.42 million, liabilities written back of Rs.1.93 million, and written back for expected credit loss of Rs.1.53 million. These were further adjusted for working capital changes, which comprised (i) adjustments for changes in our operating assets, which primarily consisted of an increase in trade receivables of Rs.126.31 million, an increase in other current assets of Rs.53.66 million, an decrease in other financial assets of Rs.1.67 million, an increase in non- current assets of Rs.1.46 million; and a decrease in inventories of Rs.64.71 million; and (ii) adjustments for changes in our operating liabilities, which primarily consisted of an increase in trade payables of Rs.201.16 million, an increase in provisions of Rs.22.69 million, an increase in other financial liabilities of Rs.5.66 million, an increase in loans of Rs.0.32 million, and a decrease in other current liabilities of Rs.17.65 million. As a result, cash generated from operations in the Financial Year 2024 was Rs.1,746.63 million, before adjusting for Rs.179.05 million of income taxes paid.
Net cash generated from operating activities was Rs.1,027.00 million in the Financial Year 2023. We had a profit before tax of Rs.1,108.87 million for the Financial Year 2023, which was primarily adjusted for depreciation and amortization expenses of Rs.201.03 million, provision for expiry and breakage sales return of Rs.43.50 million, finance costs of Rs.42.68 million, bad debts written off of Rs.1.90 million, net unrealized exchange gain of Rs.0.93 million, provision for expected credit loss of Rs.0.31 million, and loss on sale/disposal of fixed assets of Rs.0.20 million, partially offset by interest income of Rs.59.75 million, share of profit from associate of Rs.2.28 million, and income from sale of investments (mutual funds) of Rs.1.62 million. These were further adjusted for working capital changes, which comprised (i) adjustments for changes in our operating assets, which primarily consisted of an increase in inventories of Rs.314.54 million, an increase in trade receivables of Rs.129.17 million, an increase in other financial assets of Rs.1.70 million, and a decrease in current assets of Rs.109.24 million; and (ii) adjustments for changes in our operating liabilities, which primarily consisted of an increase in other financial liabilities of
Rs.149.55 million, an increase in trade payables of Rs.98.28 million, an increase in other current liabilities of Rs.20.60
million, an increase in provision of Rs.18.74 million, and an increase in loans of Rs.0.15 million. As a result, cash generated from operations in the Financial Year 2023 was Rs.1,285.22 million, before adjusting for Rs.258.22 million of income taxes paid.
Investing activities
Net cash used in investing activities was Rs.263.60 million in the three months ended June 30, 2025. This was primarily due to payment for property, plant and equipment and capital work-in-progress of Rs.127.56 million, and fixed deposits placed with bank not considered as cash and cash equivalents-Net of Rs.153.28 million, which was partially offset by interest received of Rs.14.57 million, and proceeds from sale/disposal of fixed assets of Rs.2.67 million.
Net cash used in investing activities was Rs.838.40 million in the financial year 2025. This was primarily due to payment for property, plant and equipment and capital work-in-progress of Rs.916.48 million, which was partially offset by fixed deposits placed with bank not considered as cash and cash equivalents-Net of Rs.27.53 million, interest received of Rs.44.18 million, and proceeds from sale/disposal of fixed assets of Rs.6.37 million.
Net cash used in investing activities was Rs.2,666.43 million in the Financial Year 2024. This was primarily due to payment for property, plant and equipment and intangible assets of Rs.2,863.40 million, primarily due to the acquisition of a brand in the pain management therapeutic area during the Financial Year 2024, which was partially offset by fixed deposits placed with bank not considered as cash and cash equivalents-Net of Rs.82.50 million, current investments not considered as cash and cash equivalents-Net of Rs.62.11 million, interest received of Rs.46.65 million, and proceeds from sale/disposal of fixed assets of Rs.5.71 million.
Net cash used in investing activities was Rs.502.45 million in the Financial Year 2023. This was primarily due to payment for property, plant and equipment and intangible assets of Rs.947.58 million, and payment towards purchase of non-current investments of Rs.174.28 million, these were primarily due to investment in an associate, which was partially offset by fixed deposits placed with bank not considered as cash and cash equivalents - net of
Rs.537.47 million, interest received of Rs.59.75 million, current investments not considered as cash and cash equivalents-Net of Rs.12.69 million, and proceeds from sale/disposal of fixed assets of Rs.9.50 million.
Financing activities
Net cash generated in financing activities was Rs.1.53 million in the three months ended June 30, 2025. This was primarily due to payment of dividend of Rs.408.18 million, repayment of long-term borrowings of Rs.90.00 million, interest paid of Rs.17.46 million, payment towards lease liability (excluding interest) of Rs.6.89 million, and interest on lease liability of Rs.5.47 million, which was partially offset by net increase in working capital borrowings of
Rs.529.53 million.
Net cash used in financing activities was Rs.1,065.89 million in the financial year 2025. This was primarily due to repayment of long-term borrowings of Rs.510.00 million, payment of dividend of Rs.226.29 million, net decrease in working capital borrowings of Rs.204.47 million, interest paid of Rs.78.27 million, payment towards lease liability (excluding interest) of Rs.23.78 million, and interest on lease liability of Rs.23.08 million.
Net cash generated from financing activities was Rs.985.45 million in the Financial Year 2024. This was primarily due to repayment of long-term borrowings of Rs.770.00 million, payment of dividend of Rs.169.41 million, interest paid of Rs.120.80 million, interest on lease liability of Rs.23.86 million, payment towards lease liability (excluding interest) of Rs.18.59 million, which was partially offset by proceeds from long-term borrowings of Rs.1,800.00 million and net increase in working capital borrowings of Rs.288.11 million.
Net cash used in financing activities was Rs.447.47 million in the Financial Year 2023. This was primarily due to
repayment of long-term borrowings of Rs.316.71 million, payment of dividend of Rs.69.72 million, interest paid of
Rs.28.32 million, payment towards lease liability (excluding interest) of Rs.19.93 million, interest on lease liability of
Rs.15.43 million, which was partially offset by net increase in working capital borrowings of Rs.2.64 million.
Capital expenditure and capital commitments
Our capital expenditures primarily relate to the purchase of property, plant and equipment and intangible assets, and our additions to property, plant and equipment and intangible assets aggregated to Rs.210.77 million, Rs.900.50 million, Rs.2,850.38 million and Rs.943.91 million for the three months ended June 30, 2025 and the Financial Years
2025, 2024 and 2023, respectively. As of June 30, 2025, we had estimated amount for contracts remaining unexecuted on capital account (net of advances) not provided for of Rs.198.50 million. As of June 30, 2025, we have other commitment of imported capital goods for our projects under the EPCG Scheme at concessional rate of custom duty by undertaking obligation to export. Future outstanding export obligation under the scheme is
Rs.296.86 million.
Financial indebtedness
As of June 30, 2025, we had borrowings amounting to Rs.1,066.48 million, which consisted of term loans from banks, current maturities of long term loans and working capital loans. For further details related to our indebtedness, see " Financial Indebtedness " on page 374.
Contractual obligations
The table below summarizes the maturity profile of our financial liabilities (excluding lease liabilities) as at June 30, 2025:
| Particulars | Less than 1 year | 1 to 5 years | More than 5 years | Total |
| ( Rs. in millions) | ||||
| Short-term borrowings | 636.48 | - | - | 636.48 |
| Long-term borrowings | 360.00 | 70.00 | - | 430.00 |
| Trade payables | 1,189.88 | - | - | 1,189.88 |
| Other financial liability | 480.31 | - | - | 480.31 |
| Total financial liabilities (excluding lease liabilities) | 2,666.67 | 70.00 | - | 2,736.67 |
Contingent Liabilities
As at June 30, 2025, we did not have any contingent liabilities recorded in our Restated Consolidated Financial Information.
Off-balance sheet arrangements
We do not have any off-balance sheet arrangements, derivative instruments, swap transactions or relationships with other entities or other unconsolidated entities or financial partnerships that would have been established for the purpose of facilitating off-balance sheet arrangements.
Quantitative and qualitative disclosures regarding market and other risks
We are exposed to various types of market risks during the normal course of business. The primary varieties of financial risks that we are exposed to include liquidity risk, credit risk and market risk (including interest rate risk and other price risk).
Liquidity Risk
Liquidity risk is the risk that we will not be able to meet its financial obligations as they become due. We manage our liquidity risk by ensuring, as far as possible, that we will always have sufficient liquidity to meet its liabilities when due. We generate cash flows from operations to meet our financial obligations, maintains adequate liquid assets in the form of cash and cash equivalents and have undrawn short-term line of credits from banks to ensure necessary liquidity. Also see " ?€” Contractual Obligations " on page 370.
Credit Risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Financial instruments that are subject to concentrations of credit risk materially consists of security deposits, trade receivables and investments and bank deposits.
All trade receivables are subject to credit risk exposure. Our exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry, in which the customer operates, also has an influence on credit risk assessment. Credit risk is managed through established policies, controls relating to credit approvals and procedures for continuously monitoring the creditworthiness of customers to which we grant credit terms in the normal course of business.
With respect to investments (except strategic investments), we limit our exposure to credit risk by investing in liquid securities with counterparties depending on their composite performance rankings published by rating agencies. Our investment policy lays down guidelines with respect to exposure per counterparty, rating, processes in terms of control and continuous monitoring. We therefore consider credit risks on such investments to be negligible.
With respect to bank deposits and security deposits, we limit our exposure to credit risk of cash held with banks by dealing with highly rated banks and retaining sufficient balances in bank accounts required to meet a months operational costs. We review our bank accounts on a regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. We conduct a proper financial and credibility check on the landlords before taking any property on lease and have not had a single instance of non-refund of security deposit on vacating the leased property.
Trade receivables
Our exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and credit history, also has an influence on credit risk assessment. We classify the right to consideration in exchange for deliverables as a receivable. A receivable is a right to consideration that is unconditional upon passage of time. Revenue is recognized as and when the related goods or services are delivered or performed to the customer. Trade receivables are presented net of provisions for expected credit losses in our restated balance sheet. Set out below are details of our outstanding trade receivables as at as of June 30, 2025, and as at March 31, 2024, 2023 and 2022:
| As at June 30, 2025 | As at March 31, | |||
| Particulars | 2025 | 2024 | 2023 | |
| ( Rs. in millions) | ||||
| Undisputed Trade Receivables - Considered Good | 1,508.69 | 1,182.94 | 999.36 | 870.08 |
| Less: Allowance for expected credit loss | (0.06) | (0.06) | (0.02) | (0.17) |
| Undisputed Trade Receivables - Credit Impaired | 1.77 | 1.21 | 1.36 | 2.74 |
| Less: Allowance for expected credit loss | (1.77) | (1.21) | (1.36) | (2.74) |
| Total trade receivables | 1,508.63 | 1,182.88 | 999.34 | 869.91 |
Current investments, cash and cash equivalents and derivatives
Risks in relation to current investments, cash and cash equivalents and derivatives are limited as we generally transact with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Our investments primarily include investment in mutual funds.
Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed in accordance with our policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by our Board of Directors on an annual basis. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through a counterpartys potential failure to make payments.
Other qualitative factors
Related party transactions
We have in the past entered into, and in the future may enter into, transactions with several related parties in the ordinary course of our business. Such transactions could be for, among other things, purchase of materials and services, rent expenses, rental deposits, sale of assets, interest on loans, directors remuneration and reimbursement of expenses. For further details of our related party transactions, see " Summary of the Offer Document - Summary of related party transactions " on page 26.
Dependence on a few suppliers or customers
We do not have any material dependence on a single or a few suppliers or customers.
Significant economic changes
Other than as described above under "?€” Significant Factors Affecting our Results of Operations " on page 347, to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect our income from continuing operations.
Unusual or infrequent events or transactions
Except as disclosed in this Red Herring Prospectus, to our knowledge, there have been no "unusual" or "infrequent" events or transactions that have in the past, or may in the future, affect our business operations or future financial performance.
Known trends or uncertainties
Our business has been affected and we expect will continue to be affected by the trends identified above in "?€” Significant Factors Affecting our Results of Operations " on page 347 and the uncertainties described in " Risk Factors " on page 30. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.
Future relationship between cost and income
Other than as described in this Red Herring Prospectus, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.
New products or business segments
Other than as described in " Our Business ?€” Our Strategies " on page 222, there are no new products or business segments in which we operate or propose to operate.
Seasonality of business
Our business is not materially affected by seasonal fluctuations.
Significant developments occurring after June 30, 2025
No circumstances have arisen since the date of the last financial statements disclosed in this Red Herring Prospectus which adversely affect or are likely to affect, our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next 12 months.
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+91 9892691696
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