THE STATE OF COMPANY AFFAIRS The Company is engaged in manufacturing, development, production and marketing of research-based cortico steroids (Sterile and Non-Sterile) and steroids-hormone range of APIs. During the period under reference, the Company has continued its initiative for product development for the formulation business which is facilitating in its penetration and presence. The Company’s product pipeline for the regulated market is strong which is likely to show strong transactions in revenue in the years to come. The Company has two manufacturing units in Rau and Special Economic Zone, Pithampur. Both the facilities are approved by USFDA and EU-GMP as at present. The Company is also a WHO-GMP certified Company. The Company is currently in growth phase and is exploring new markets all over the world. The Company is able to grow its exports in the current financial year, which is boosted by the larger support from the new geographies. The Company has a wide range of Cortico-Steroid APIs and Hormone APIs products to cater to the demands of the industry. Also, the Company is constantly spending on research and development acitivities to develop new products. The Company caters to both the domestic and export markets. It has business presence in more than 70 countries. Almost all key global pharmaceutical players and formulators are in its customer list. During the Financial Year 2022-23, your Company has managed the affairs in a fair and transparent manner and there was no change in the business of the Company.

CONSERVATION OF ENERGY I the steps taken or impact on conservation of energy: Increased condensate recovery from peddle drier/ETP Additional Steam condensate recovery and the same will be increased by continuous utilization of peddle drier. Maintained near to unity power factor for energy/cost effective on continuous basis. Provided VFD’s with PID controller in three Utiltities Cooling tower to control RPM for increase lifespan of ID fan and energy saving. We provided VFD’s in ETP two aireators, two HF Reactor and screw feeder of peddle drier to control RPM for increase lifespan of equipment and energy saving. We provided VFD’s in brine plant circualtions pumps to control RPM for increase lifespan of equipment and energy saving. Motion sensor led lights has been installed in warehouse AHU area and Unit-1 & Unit-2 AHU area to control energy consumption. Solar lamps installed in streetl light pole and parking areas to minimize energy consumption and utilize renewable energy. Replaced 500 numbers of 36W CFL PLL rod with 18W LED PLL rod for lighting and energy saving. Zero loss auto dain valve installed in compressed air to avoid air losses and energy saving. Auto blowdown valve arraged in Brine cooling tower and timer based blowdown valve arraged in ETP primary setteling tank (PST) for control of water wastage. Automatic sensor operated faucets arraged in Admin building, Canteen and warehouse for contol of water wastage Energy efficeinet Utiltiy cooling tower provided in PMU plant. II the steps taken by the Company for utilising alternate sources of energy: Increased utilization of biomass briquette for steam generation which lead to reduction of carbon emission in the environment. III the capital investment on energy conservation equipments: Utiltiy cooling tower and Eneegy efficient 412TR chiller provided in PMU plant. CAPEX of 300KVAR APFC panel to maintain power factor to unity. Energy Saving by installing 396 CFM, Atlas Copco make Screw compressor against Reciprocating compressor. Installalation of Solar Street Lighting and parking lamps.

TECHNOLOGY ABSORPTION I the efforts made towards technology absorption: Identification of various schemes available for the molecule by collecting the literature survey using Scifinder search, carrying out feasibility studies, process optimization, validation and scale up. Develop of backward integration for manufacture intermediate / starting material. Development of Process Flow chemistry for the existing molecules to improve the yields, reduce time cycle and increase the productivity/ process efficiency. Development of Photochemistry to synthesize complex molecules. II the benefits derived like product improvement, cost reduction, product development or import substitution: Improvement in the existing process regarding their cost reduction, capacity enhancement & operational suitability. Trouble shooting of the problems occurred in plant for the existing API’s Setting/ fine-tuning of process parameters & their validation for existing API’s. To develop Control capability/strategy for focusing on critical points, when processing at pilot Vs. Manufacturing scale. III In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- Not Applicable IV the expenditure incurred on Research and Development: Rs. 153.92 million.

Foreign exchange earnings and Outgo The Foreign Exchange earned during the year in terms of actual inflows (accural basis): Rs 2,85,52,58,467 The Foreign Exchange outgo during the year in terms of actual outflows (accural basis): Rs. 2,09,64,17,291

DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 134(3)(c) of the Companies Act, 2013, with respect to Directors’ Responsibility Statement, the Directors confirm that: In the preparation of annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures. 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 and loss of the Company for that 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 Director had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.