FINANCIAL SUMMARY AND STATE OF COMPANY AFFAIRS: The standalone and consolidated financial statements for the financial year ended March 31st 2023 forming part of this Annual Report have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs. On a consolidated basis our revenue from operations have increased to Rs. 39,351.87 lakhs for the current year as against Rs. 31,356.72 lakhs in the previous year recording an increase of 25.50%. Our net losses as on 31st March, 2023 stand to Rs. 1,688.77 lakhs for the current year as against Rs. 6,711.77 lakhs in the previous year recording a decrease of 5,023.00 Lakhs.  The consolidated losses for the year are lower as compared to previous year due to increase in sales during the year by 25.50% and the R&D expenditure was higher in the previous year. During the year, Advagen has started gaining share in revenue from sale of products  from 7% (FY 2021-22) to 52% (FY 2022-3). On a standalone basis our sales increased to Rs.  40,747.91 lakhs for the current year as against Rs. 40,003.57 lakhs in the previous year recording an increase of 1.86%. Our net profits as on 31st March, 2023 stand to Rs. 1,271.93 lakhs in the current year as against  Rs. 1,668.32 lakhs  in the previous year recording a decrease of 23.76 % The key highlights for the period ended 31st March, 2023 compared to the previous Financial Year are as under: Rs. lakhs Particulars        2022-23      2021-22 Total Revenue 43,587.47 41,741.33 Profit/(Loss)before Depreciation 5,111.27 4,842.99 Less: Provision for Depreciation 3,284.27 3,150.73 Profit/ (Loss) before Exceptional Items/Extra Ordinary Items and Tax 1,827.00 1,692.26 Add/(Less) Exceptional Items/Extra Ordinary Items - - Profit/ (Loss) after Exceptional Items/Extra-Ordinary Items 1,827.00 1,692.26 Less Taxes 555.07      23.94 Net profit/ (loss) Appropriation to GL 1,271.93 1,668.32 Opening Balance of Retained Earnings 16,235.88 14,617.73 Closing Balance of Retained Earnings 17,491.08 16,235.88  

CONSERVATION OF ENERGY Steps taken or impact on conservation of energy: The Company has always been conscious of the need for conservation of energy and has been sensitive in making progress towards this end. Energy conservation measures have been implemented at Ambernath Plant of the Company and special efforts are being made on undertaking specific energy conservation projects. In the past year, Company has installed significant amount of LED lighting to replace legacy conventional CFL lighting. The company has also installed new utility equipment such as Chiller and Air Compressor with Variable Frequency Drive (VFD) technology so as to reduce electricity consumption across the site. New Boiler Installation: Procured new boilers working on liquified gas rather than Furnace oil fired boilers. These boilers are economical to operate considering the steam cost and bring about significant reduction in pollution levels. The company has also installed Environmental monitoring system (EMS) for operation of AHU’s which will work on an automated feedback loop through automated actuation of the AHU’s to optimize energy levels required for operation of the AHU’s. Maintenance of power factor: Company maintains a power factor of higher than 99% across all months in manufacturing site as well as R&D center to optimize power usage.   Steps taken by the company for utilizing alternate sources of energy: The Company has Installed Solar Panels at Ambernath facility for reduction in energy Consumption and continues to monitor regularly performance of these solar panels and improvement in performance.    Capital investment on energy conservation equipment: The Company has made capital investment on installation of solar panels in the FY 2018-19; and further enhanced the same in FY 22-23 by adding ~350 KWH of solar panel installations.   Water Conservation: The company operates a Zero Liquid Discharge (ZLD) effluent system in compliance with Maharashtra Pollution Control Board (MPCB) norms. The company also has an active rainwater harvesting program; and several active water reduction measures such as: Throttling devices at all taps across manufacturing and R&D centers to reduce water usage by ~3,000 liters per month Usage of high-pressure devices in manufacturing to reduce water usage for cleaning of manufacturing equipment and devices Recycling of water using STP plant for usage in bathrooms, gardening and other non-potable purposes  

TECHNOLOGY ABSORPTION (i)Efforts made towards technology absorption: We continue to increase investments for generic and specialty pharmaceutical research and technology. Additionally, patient friendly formulations for existing molecules which, offer increased convenience to patients are being developed. This research supports our generic business across all the markets we are present in, and ensures we have a healthy pipeline for future growth.   Company utilizes several advanced manufacturing technologies such as roller compacter-base for extended release multiparticulate system to solidify cost leadership for complex extended-release oral solid formulations.   Company has also incurred significant CAPEX toward new technologies in development toward various complex dosage forms: Complex Injectable and Sterile products: Using equipment such as high-pressure homogenizers, nietsche mills for particle size controls, autoclaves for sterilization, lyophilizers for long acting injectables and depot products Nasal Sprays and Inhalation Products: Company has invested in characterization equipment for plume geometry, spray patterns in their Toronto R&D center for Nasal Spray characterization. Further company has incurred significant CAPEX for procurement of manufacturing and filling lines for nasal sprays to be installed in India Analytical techniques: Company has incurred CAPEX toward procurement of LCMS, GCMS, ICP equipment in their analytical laboratories to carry out complex analytical techniques for extractables, leachable, NDMA impurity testing and other complex and critical analytical parameters for product development Evaluation of cost effective and high throughput technologies, for example: exploring utilization of 100% aqueous based formulation manufacturing avoiding organic solvents for existing and new formulation; Patenting of newer processes/ newer products/ newer drug delivery systems/ newer medical devices/ newer usage of drugs for both local and international markets; Development of methods to improve safety procedures, effluent control, pollution control, etc.  

Foreign exchange earned in terms of actual inflows during the year and the foreign exchange outgo during the year in terms of actual outflows.                                                                                                                                                            Rs. Lakhs.   Particulars   2022-23 2021-22 Foreign Exchange Earnings in terms of actual inflows   30,390.39 31,419.24 Foreign Exchange Outgo in terms of actual outflows   13,874.82 15,814.89  

DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to the requirement of section 134(5) read with Section 134(3)(c) of the Act of the Companies Act 2013, the Directors state that: In the preparation of the Annual Accounts for the year 31.03.2023, the applicable Accounting Standards had been followed and there are no material departures from the same; The Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the period; The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; The Directors had prepared the annual accounts on a going concern basis; The Directors have adopted the framework of Internal Controls over Financial Reporting. The framework is adequate and is operating effectively The Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effe