అకౌంట్స్ గమనికలుAdvanced Enzyme Technologies Ltd.

Mar 31, 2025

l. Provisions and contingencies

Provisions are determined by discounting the
expected future cash flows specific to the liability. The
unwinding of the discount is recognised as finance
cost. A provision for onerous contracts is measured
at the present value of the lower of the expected cost
of terminating the contract and the expected net cost
of continuing with the contract. Before a provision is
established, the Company recognises any impairment
loss on the assets associated with that contract.

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but will probably not, require an outflow of
resources. When there is a possible obligation or a
present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or
disclosure is made.

A contingent asset is not recognised but disclosed in
the financial statements where an inflow of economic
benefit is probable.

m. Leases

The Company assesses whether a contract contains
a lease, at inception of a contract. 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 assets, the Company assesses whether:

(i) the contact involves the use of an identified asset

(ii) the Company has substantially all of the
economic benefits from use of the asset through
the period of the lease and

(iii) the Company has the right to direct the use of
the asset.

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

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

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

Generally, the Company uses its incremental
borrowing rate as the discount rate. Lease payments
included in the measurement of the lease liability
comprise the fixed payments, including in substance
fixed payments;

The lease liability is measured at amortised cost
using the effective interest method.

The Company has elected not to recognise right-of-
use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less and leases
of low-value assets.

The Company’s leases mainly comprise of office
premises and land and buildings for warehouse
facilities.

n. Cash and cash equivalents

Cash comprises of cash at bank and in hand and cash
equivalents comprise of short-term bank deposits
with an original maturity of three months or less.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company’s cash management.

3. Financial Instruments
a. Financial assets

i. Recognition and initial measurement

Trade receivables and debt instruments
issued are initially recognised when they
are originated. All other financial assets

are initially recognised when the Company
becomes a party to the contractual
provisions of the instrument.

A financial asset is initially measured at fair
value. In the case of financial assets which
are recognised at fair value through profit
and loss (FVTPL), the transaction costs are
recognised in the Statement of Profit and
Loss. In other cases, the transaction costs
are attributed to the acquisition value of
the financial asset.

ii. Classification

On initial recognition, a financial asset is
classified as measured at

- amortised cost; or

- fair value through profit and loss
(FVTPL); or

- fair value through other comprehensive
income (FVOCI) - debt investment or
equity investment

Financial assets are not reclassified
subsequent to their initial recognition,
except if and in the period the Company
changes its business model for managing
financial assets.

A financial asset is measured at amortised
cost if it meets both of the following
conditions and is not designated as at
FVTPL:

- the asset is held within a business
model whose objective is to hold
assets to collect contractual cash
flows; and

- the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

iii. Recognition and initial measurement

A debt investment is measured at FVOCI if it
meets both of the following conditions and
is not designated as at FVTPL:

- the asset is held within a business
model whose objective is achieved by
both collecting contractual cash flows
and selling financial assets; and

- the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
amount outstanding.

On initial recognition of an equity
investment that is not held for trading, the
Company may irrevocably elect to present
subsequent changes in the investment’s
fair value in OCI (designated as FVOCI -
equity investment). This election is made
on an investment- by- investment basis.

All financial assets not classified as
measured at amortised cost or FVOCI as
described above are measured at FVTPL.
This includes all derivative financial assets.
On initial recognition, the Company may
irrevocably designate a financial asset
that otherwise meets the requirements
to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates
or significantly reduces an accounting
mismatch that would otherwise arise.

Financial assets that are held for trading
or are managed and whose performance
is evaluated on a fair value basis are
measured at FVTPL.

iv. Subsequent measurement and gains and
losses

Financial assets at FVTPL

These assets are subsequently measured
at fair value. Net gains and losses,
including any interest or dividend income,
are recognised in Statement of Profit and
Loss.

Financial assets at amortised cost

These assets are subsequently measured at
amortised cost using the effective interest
method. The amortised cost is reduced by
impairment losses. Interest income, foreign
exchange gains and losses and impairment
are recognised in Statement of Profit and
Loss. Any gain or loss on derecognition is
recognised in Statement of Profit and Loss.

Debt investments at FVOCI

These assets are subsequently measured
at fair value. Interest income under the
effective interest method, foreign exchange
gains and losses and impairment are
recognised in Statement of Profit and Loss.
Other net gains and losses are recognised
in OCI. On derecognition, gains and losses
accumulated in OCI are reclassified to
Statement of Profit and Loss.

Equity investments at FVOCI

These assets are subsequently measured
at fair value. Dividends are recognised as
income in Statement of Profit and Loss
unless the dividend clearly represents
a recovery of part of the cost of the
investment. Other net gains and losses are
recognised in OCI and are not reclassified
to Statement of Profit and Loss.

v. Derecognition

The Company derecognises a financial
asset when the contractual rights to the

cash flows from the financial asset expire,
or it transfers the rights to receive the
contractual cash flows in a transaction
in which substantially all of the risks and
rewards of ownership of the financial asset
are transferred or in which the Company
neither transfers nor retains substantially
all of the risks and rewards of ownership
and does not retain control of the financial
asset.

If the Company enters into transactions
whereby it transfers assets recognised on
its balance sheet, but retains either all or
substantially all of the risks and rewards
of the transferred assets, the transferred
assets are not derecognised.

vi. Impairment of financial assets

In accordance with Ind AS 109, the company
applies Expected Credit Loss (ECL) model
for measurement and recognition of

impairment loss on the following financial
assets and credit risk exposure:

i. Financial assets that are debt

instruments, and are measured

at amortised cost e.g., loans, debt

securities, deposits, and bank

balance.

ii. Trade receivables.

The application of simplified approach
does not require the company to
track changes in credit risk. Rather, it
recognises impairment loss allowance
based on lifetime ECLs at each
reporting date, right from its initial
recognition.

vii. Investment in subsidiaries

Investment in subsidiaries is carried at cost
in the standalone financial statements.

b. Financial liabilities

i. Recognition and initial measurement

All financial liabilities are initially
recognised when the Company becomes a
party to the contractual provisions of the
instrument.

A financial liability is initially measured at
fair value. In the case of financial liabilities
which are recognised at fair value through
profit and loss (FVTPL), the transaction
costs are recognised in the Statement
of Profit and Loss. In other cases, the
transaction costs are attributed to the
acquisition or issue of financial liability.

ii. Classification, subsequent measurement
and gains and losses

Financial liabilities are classified as
measured at amortised cost or FVTPL. A
financial liability is classified as at FVTPL
if it is classified as held- for- trading, or it
is a derivative or it is designated as such
on initial recognition. Financial liabilities
at FVTPL are measured at fair value and
net gains and losses, including any interest
expense, are recognised in Statement of
Profit and Loss. Other financial liabilities
are subsequently measured at amortised
cost using the effective interest method.
Interest expense and foreign exchange
gains and losses are recognised in
Statement of Profit and Loss. Any gain or
loss on derecognition is also recognised in
Statement of Profit and Loss.

iii. Derecognition

The Company derecognises a financial
liability when its contractual obligations
are discharged or cancelled, or expire.

The Company also derecognises a financial
liability when its terms are modified and the
cash flows under the modified terms are
substantially different. In this case, a new
financial liability based on the modified
terms is recognised at fair value. The
difference between the carrying amount of
the financial liability extinguished and the
new financial liability with modified terms
is recognised in Statement of Profit and
Loss.

iv. Offsetting

Financial assets and financial liabilities
are offset and the net amount presented
in the balance sheet when, and only
when, the Company currently has a legally
enforceable right to set off the amounts
and it intends either to settle them on a net
basis or to realise the asset and settle the
liability simultaneously.

v. Financial guarantee contract

Financial guarantee contracts issued on
behalf of a subsidiary is accounted as
capital contribution to the subsidiary,
if no payments from the subsidiary to
the Company is agreed, and recorded as
investments in the standalone financial
statement.

p. Earnings Per Share:

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the period.

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

Nature and purpose of reserves
Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.
Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of
the Companies Act, 2013.

Employee stock option reserve

This represents the fair value of options granted to eligible employees of the Company under the ESOS 2022 Scheme over the
vesting period. This reserve will be utilised on exercise of options by the employees.

General reserve

General reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit
and Loss. The Company can use this reserve for payment of dividend and issue of fully paid up and not paid up bonus shares.

Retained earnings

This reserve represents surplus of profit and loss account.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current
tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities
and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable
income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact
the recoverability of deferred tax assets.

Given that the Company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax
asset on indexation benefit in relation to such investments has not been recognised.

37 Employee benefits

The Company contributes to the following post-employment plans in India.

(A) Defined Contribution Plans:

The Company makes contributions towards provident fund and superannuation fund which are in the nature of defined
contribution post employment benefit plans. Under the plan, the Company is required to contribute a specified percentage
of payroll cost to fund the benefits.

The Company recognised H 18.89 million for the year ended 31 March 2025 (31 March 2024: H 16.62 million) towards
provident fund and employee deposit linked insurance contribution and H 3.38 million for the year ended 31 March 2025
(31 March 2024: H 3.49 million) towards superannuation fund contribution in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(B) Defined Benefit Plan:

The Company provides for gratuity benefit, which is defined benefit plans, covering all its eligible employees. The Company
has taken a Group Gratuity for its employees with the Life Insurance Corporation of India (LIC). Under gratuity policy, the
eligible employees are entitled to receive gratuity payments upon their resignation or death (subject to completion of 4.5
years of employment) in lumpsum after deduction of necessary taxes.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in
relation to the gratuity scheme was carried out as at 31 March 2025. The present value of the defined benefit obligations
and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(b) The Weighted average incremental borrowing rate of 9.50% p.a. for local currency borrowings has been applied for measuring
the lease liability at the date of initial application.

(c) The Company incurred H 13.42 million for the year ended 31 March 2025 (31 March 2024: H 12.07 million) towards expenses
relating to leases in statement of profit and loss. Lease rent incurred not falling under the scope of Ind AS 116 amounted to H
2.17 million for the year ended 31 March 2025 (31 March 2024: H 2.00 million). (refer Note 35).

(d) Total cash outflow for leases for year ended 31 March 2025 is H 9.80 million (31 March 24: H 9.44 million).

(e) General Description of leasing agreements:

- Leased Assets: Office premises and leasehold land

- Future Lease rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing.

- Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.

(f) Please refer note 7 for carrying value of Right of Use Assets for the year ended 31 March 2025

Major customer

Revenue from a customer i.e. a subsidiary based in U.S.A. is H 473.13 million is in excess of 10% of the Company''s revenue for
the year (31 March 2024: H 456.40 million from a subsidiary based in U.S.A) (Refer note 42 for related party disclosures).

40 Earnings per share (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number
of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on
conversion of all the dilutive potential Equity shares into Equity shares.

41 Financial instruments

i. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their
levels are presented below. It does not include the fair value information for financial assets and financial liabilities not
measured at fair value if their carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:

• Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in
part using a valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.

The cost of unquoted investments included in Level 3 of fair value hierarchy approximate their fair value because there is a wide
range of possible fair value measurements and the cost represents estimate of fair value within that range.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

¦ Credit risk;

¦ Liquidity risk; and

¦ Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the Risk Management Committee, which is responsible
for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of
directors on its activities

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal auditor undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment
securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments.

Trade and other receivables

The Company’s 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 country in which the customer operates,
also has an influence on credit risk assessment.

At 31 March 2025, the carrying amount of the Company’s most significant customer accounted for H 118.22 million
(31 March 2024 - H 167.44 million)

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that
have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and
does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its
surplus funds in bank fixed deposit and mutual funds which carry no/low mark-to-market risks. The Company monitors
funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Exposure to liquidity risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted except in case of lease liabilities where the amounts are mentioned on discounted basis, and include
estimated interest payments:

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices
- will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We
are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function
of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid
excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the
Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially
in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative
instruments, i.e. foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in
respect of its highly probable forecasted transactions and recognized assets and liabilities.

43 Employee share-based payment plans

a) Description of share-based payment arrangements:

As at 31 March 2025, the Company has the following share-based payment arrangements for employees.

‘AETL Employee Stock Option Scheme 2022''- (”AETL ESOS 2022”) AETL ESOS 2022, 1st grant provides for the grant of 576,000
stock options to specified employees on 12 August 2023. The AETL ESOS 2022 had been formulated by Board of Directors which
was further adopted by Nomination and Remuneration committee. The Shareholders approved scheme on 12 August 2023. The
plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance
with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share of face value of H 2
each for every option as per the scheme.

576,000 Equity Shares of Face Value of H 2 each are reserved for issue under AETL Employee Stock Option Scheme 2022 (AETL
ESOS2022)

*The Committee of Corporate Social Responsibility had approved the budget of H 19.24 million (31 March 2024: 15.59 million),
the Company contributes to the various projects undertaken by various organisations. During the year the amount spent is H
7.97 million (31 March 2024: H 11.28 million) on the ongoing projects and H 0.5 million towards current year project (31 March
2024: H Nil). The Company has deposited the balance unspent amount of H 10.77 million (31 March 2024: H 4.31 million) in a
separate bank account.

48 Acquisition of additional stake in JC Biotech Private Limited

On 5 March 2024, the Company has acquired additional stake of 5.89% in its subsidiary JC Biotech Private Limited for a
consideration of H 56.07 million. Post this additional acquisition the Company holds 95.72% stake in the subsidiary.

49 Investment in Advanced Enzymes Europe B.V.

On 19 December 2024, the Company invested H 478.18 million in Advanced Enzymes Europe B.V. (''AEEBV'') (wholly owned
subsidiary) by way of subscription to 3,623,163 equity shares. The value per equity share is EUR 1.48 and the face value of EUR
1 per share. Pursuant to this the Company now holds 7,900,000 equity share of AEEBV and the Company continues to be 100%
shareholder of AEEBV.

50 Proposed Dividend

The Board of Directors recommended a final dividend for the financial year 2024-25 of H 1.20/- (31 March 2024: H 1.10) per equity
share of the face value of H 2/- each, and the same will be paid after approval of shareholders in the Annual General Meeting of
the Company.

51 Impairment of investment in Advanced Enzymes Europe B.V.

During the year ended 31 March 2024, the Company has carried out fair value assessment of its investment in Advanced Enzymes
Europe B.V. (AEEBV) after considering past business performance, prevailing business conditions and revised expectations of
its future performance and this assessment has resulted in impairment loss of H 189.48 million of investment in the subsidiary.

54 The Code on Social Security 2020

The Code on Social Security 2020 (‘the Code’) relating to employee benefits, during the employment and post-employment, has
received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry
of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which
the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in
which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary
assessment, the Company believes the impact of the change will not be significant.

55 Disclosure under Section 186 of the Companies Act, 2013

a) The details of investment and loan under Section 186 of the Act read with the Companies (Meetings of the board and its
Powers) Rules, 2014 are as follows:

56 Conversion of loan to Advanced Enzymes Europe B.V. (''AEEBV'') into equity

Effective date 7 April 2023, loan given by the Company to Advanced Enzymes Europe B.V. (AEEBV) including the outstanding
interest aggregating to H 329 million got converted into 2,276,837 fully paid up equity shares. The value per equity share is EUR
1.63 and the face value of EUR 1 per share. Pursuant to this conversion, the Company now holds 4,276,837 equity share of
AEEBV and the Company continues to be 100% shareholder of AEEBV.

57 Voluntary strike off of Advanced Enzymes Malaysia Sdn. Bhd. (''AEM'')

Effective 8 November 2023, the wholly owned subsidiary AEM was struck off on 8 November 2023 after approval from Registrar
of Companies, Malaysia , and status of AEM is now appearing as ‘Dissolved’. Consequently, AEM ceases to be the subsidiary of
the Company. The Company has written off its investment in equity share capital and loan given by the Company to AEM along
with interest receivable and corresponding provision created against investment, loan and interest receivable is also released.
There is no impact on the profitability of the Company in the current year.

58 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of
the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

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

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries)with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961.

59 Previous year amounts have been regrouped / reclassified wherever necessary.

for M S K A & Associates for and on behalf of the Board

Chartered Accountants

Firm’s Registration No: 105047W

Amrish Vaidya Mukund Kabra Vinodkumar Jajoo

Partner Wholetime Director Director

Membership No.: 101739 DIN : 00148294 DIN : 08224980

Place : Thane Place : Nashik

Sanjay Basantani Beni P. Rauka

Place: Thane Company Secretary Chief Financial Officer

Date: 13 May 2025 Membership No: A19637 Membership No: 039980

Place : Thane Place : Thane

---

Mar 31, 2024

c) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a par value of '' 2 per share. Each holder of equity share is entitled to one vote per share. The final dividend, if any, proposed by Board of Directors is subject to approval by the Shareholders. All shares rank pari passu on repayment of capital in the event of liquidation. Dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting except interim dividend.

d) Shares reserved for issue under "Employees Stock Option Scheme 2015 (ESOS 2015)"

The Company had reserved issuance of 220,000 Equity shares having face value of '' 2 each (31 March 2023: 220,000) for offering to eligible employees of the Company under AETL Employees Stock Option Scheme 2015 (ESOS 2015) . The option would vest on graded basis over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria. (refer note 44).

e) Shares reserved for issue under "Employees Stock Option Scheme 2022 (ESOS 2022)"

The Company had reserved issuance of 576,000 Equity shares having face value of '' 2 each for offering to eligible employees of the Company under AETL Employees Stock Option Scheme 2022 (ESOS 2022). The option would vest on graded basis over a maximum period of 6 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria. (refer note 44A)

Nature and purpose of reserves Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve. Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid up and not paid up bonus shares.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Given that the Company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognised.

a) Details of security for each type of borrowings as at 31 March 2023

Loans repayable on demand from Banks (Working Capital loans) are secured by first pari passu charge on all existing and future current assets of the Company.

b) Terms of loans repayable on demand

(i) Cash Credit from bank as at 31 March 2024: Rs Nil (31 March 2023: '' 0.07) carries an interest rate of 9% to 11%.

The Management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2024 has been made in the standalone financial statements based on information received and available with the Company.

EM EMPLOYEE BENEFITS

The Group contributes to the following post-employment plans in India.

(A) Defined Contribution Plans:

The Company makes contributions towards provident fund and superannuation fund which are in the nature of defined contribution post employment benefit plans. Under the plan, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.

The Company recognised '' 16.62 million for the year ended 31 March 2024 (31 March 2023: '' 14.56 million) towards provident fund and employee deposit linked insurance contribution and '' 3.49 million for the year ended 31 March 2024 (31 March 2023: '' 3.48 million) towards super-annuation fund contribution in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(B) Defined Benefit Plan:

The Company provides for gratuity benefit, which is defined benefit plans, covering all its eligible employees. The Company has taken a Group Gratuity for its employees with the Life Insurance Corporation of India (LIC). Under gratuity policy, the eligible employees are entitled to receive gratuity payments upon their resignation or death (subject to completion of 4.5 years of employment) in lumpsum after deduction of necessary taxes.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at 31 March 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

(b) The Weighted average incremental borrowing rate of 9.00% p.a. for local currency borrowings has been applied for measuring the lease liability at the date of initial application.

(c) The Company incurred '' 12.07 million for the year ended 31 March 2024 (31 March 2023: '' 10.65 million) towards expenses relating to leases. Lease rent incurred not falling under the scope of Ind AS 116 amounted to '' 2.00 million for the year ended 31 March 2024 (31 March 2023: '' 1.68 million). (refer Note 36).

(d) Total cash outflow for leases for year ended 31 March 2024 is '' 9.44 million (31 March 23: '' 7.81 million).

(e) General Description of leasing agreements:

- Leased Assets: Office

- Future Lease rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing.

- Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.

(f) Please refer note 7 for carrying value of Right of Use Assets for the year ended 31 March 2024

EM SEGMENT REPORTING Basis of segmentation

Segments are identified based on the manner in which the Company’s Chief Operating Decision Maker (''CODM’) decides about resource allocation and reviews performance.

The Company has identified that it operates only in one business segment viz. ''manufacturing and sales of enzymes’ and hence no separate information for primary segment wise disclosure is required.

Gegraphic information

The geographic information analyses the Company’s revenues and non-current assets by the Company’s country of domicile and other countries. In presenting geographic information, segment revenue has been based on the selling location in relation to sales to customers and segment assets are based on geographical location of assets.

Major customer

Revenue from a customer i.e. a subsidiary based in U.S.A. is '' 456.40 million is in excess of 10% of the Company’s revenue for the year (31 March 2023: '' 379.91 million from a subsidiary based in U.S.A) (Refer note 43 for related party disclosures).

EM EARNINGS PER SHARE (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

WGM FINANCIAL INSTRUMENTS

1. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if their carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following their levels:

• Level 1 - Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived) from prices.

• Level 3 - Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

The cost of unquoted investments included in Level 3 of fair value hierarchy approximate their fair value because there is a wide range of possible fair value measurements and the cost represents estimate of fair value within that range.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk ;

• Liquidity risk ; and

• Market risk

i. Risk management framework

At 31 March 2024, the carrying amount of the Company’s most significant customer accounted for '' 167.44 million (31 March 2023 - '' 84.33 million) Summary of the Company’s exposure to credit risk by age of the outstanding from various customers is as follows:

Expected credit loss assessment for customers as at 31 March 2023 and 31 March 2024

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal auditor undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade and other receivables

The Company’s 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 country in which the customer operates, also has an influence on credit risk assessment.

The impairment loss at 31 March 2024 and 31 March 2023 related to certain customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Cash and cash equivalents

The Company held cash and cash equivalents of '' 14.95 million at 31 March 2024 (31 March 2023: '' 94.49 million). The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

Derivatives

There are no derivatives contracts outstanding as on 31 March 2024.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from nonperformance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks. Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and mutual funds which carry no/low mark-to-market risks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Exposure to liquidity risk:

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted except in case of lease liabilities where the amounts are mentioned on discounted basis, and include estimated interest payments:

iv. Market risk

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars and Euros at March 31 would have affected the measurement of financial instruments denominated in US dollars and Euros and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e. foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognized assets and liabilities.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interestbearing financial instruments as reported to the management of the Company is as follows.

loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date assuming that all other variables, in particular foreign currency exchange rates, remain constant. The period end balances are not necessarily representative of the average debt outstanding during the period.

WM EMPLOYEE SHARE-BASED PAYMENT PLANS a) Description of share-based payment arrangements:

As at 31 March 2024, the Company has the following share-based payment arrangements for employees.

''AETL Employee Stock Option Scheme 2015''- ("AETL ESOS 2015”)

AETL ESOS 2015 (amended) provides for the grant of 44,000 stock options to specified employees on 15 February 2017. The AETL ESOS 2015 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee and recommended further changes to AETL ESOS 2015. The Shareholders approved the amended scheme on 15 September 2016. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share of face value of '' 10 each for every option at an exercise price of '' 300.

220,000 Equity Shares of Face Value of '' 2 each (31 March 2023: 220,000) are reserved for issue under AETL Employee Stock Option Scheme 2015 (AETL ESOS-2015)

b) Measurement of fair value :

The fair values are measured based on the Black-Scholes-option valuation model. Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value.

The inputs used in the measurement of the fair values at grant date and measurement date of the stock options were as follows.

QQQ EMPLOYEE SHARE-BASED PAYMENT PLANS a) Description of share-based payment arrangements:

As at 31 March 2024, the Company has the following share-based payment arrangements for employees.

''AETL Employee Stock Option Scheme 2022''- ("AETL ESOS 2022")

AETL ESOS 2022 provides for the grant of 576,000 stock options to specified employees on 12 August 2023. The AETL ESOS 2022 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee. The Shareholders approved scheme on 19 August 2022. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share of face value of '' 2 each for every option as per the scheme.

576,000 Equity Shares of Face Value of '' 2 each are reserved for issue under AETL Employee Stock Option Scheme 2022 (AETL ESOS-2022)

*The Committee of Corporate Social Responsibility had approved the budget of '' 15.59 million (31 March 2023: 15.52 million), the Company contributes to the various projects undertaken by various organisations. During the year the amount spent is '' 11.28 million (31 March 2023: '' 3.20 million) on the ongoing projects. The Company has deposited the balance unspent amount of '' 4.31 million (31 March 2023: '' 12.32 million) in a separate bank account.

| ACQUISITION OF ADDITIONAL STAKE IN JC BIOTECH PRIVATE LIMITED

On 3 January 2023, the Company has acquired additional stake of 4.83% in its subsidiary JC Biotech Private Limited for a consideration of '' 68.00 million. Post this additional acquisition the Company holds 89.83% stake in the subsidiary. Further on 5 March 2024, the Company has acquired additional stake of 5.89% in its subsidiary JC Biotech Private Limited for a consideration of '' 56.07 million. Post this additional acquisition the Company holds 95.72% stake in the subsidiary.

| PROPOSED DIVIDEND

The Board of Directors recommended a final dividend for the financial year 2023-24 of '' 1.10/- (31 March 2023: '' 1.00) per equity share of the face value of '' 2/- each, and the same will be paid after approval of shareholders in the Annual General Meeting of the Company.

| ACQUISITION OF 50% STAKE IN SAIGANESH ENZYTECH SOLUTIONS PRIVATE LIMITED ("SESPL")

On 3 January 2023, the Company completed the acquisition of 50% of the paid up equity share capital in Saiganesh Enzytech Solutions Private Limited (''SESPL'') for a total consideration of '' 59.97 million. SESPL is primarily engaged into extracting Latex from papaya, purifying and providing finish papain enzyme in liquid form (agriculture extraction of Papain enzyme).

| IMPAIRMENT OF INVESTMENT IN ADVANCED ENZYMES TECHNOLOGIES B.V.

The Company has carried out fair value assessment of its investment in Advanced Enzymes Europe B.V. (AEEBV) after considering past business performance, prevailing business conditions and revised expectations of its future performance and this assessment has resulted in impairment loss of '' 189.48 million of investment in the subsidiary.

| CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
	31 March 2024	31 March 2023
Contingent liabilities
Pertains to income tax demand/ matters on account of deductions/ disallowances for earlier years, pending for appeals consequent to order passed against the Company/ demands raised by the Department under Income Tax Act, 1961. Amount paid and adjusted there against and included under Income tax asset '' 129.52 million (31 March 2023: '' 104.35 million).	25.92	25.24
Pertains to Excise Duty and Service Tax demand raised by Commissioner of Central Excise, Customs and Service tax on account of inadmissible CENVAT credit, incorrect product classification and service tax levy on directors'' remuneration for various periods. Amount paid there against and included under note 19 ''Other current assets''.	27.58	27.58
The Hon’ble Supreme Court of India ("SC") by their order dated February 28, 2019, in the case of Surya Roshni Limited & others v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the sC for disposal. In view of the management, the liability for the period from date of the SC order to 31 March 2019 is not significant. Further, pending decision on the subject review petition and directions from the EPFO, the impact for the past period, if any, is not ascertainable and consequently no effect has been given in the accounts. Accordingly, this has been disclosed as a Contingent liability in the financial statements.
	53.50	52.82
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liability, where applicable in its standalone financial statements. The Company’s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect of the Company’s results of operations or financial condition.
	31 March 2024	31 March 2023
Commitments
Estimated amount of commitments remaining to be executed
- Capital (net of advances)	123.81	84.07
	123.81	84.07

I THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 (''the Code’) relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

Maximum amount outstanding during the year is '' 245.95 million (31 March 2023: '' 245.95 million) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

1 CONVERSION OF LOAN TO ADVANCED ENZYMES EUROPE B.V. (''AEEBV'') INTO EQUITY

Effective date 7 April 2023, loan given by the Company to Advanced Enzymes Europe B.V. (AEEBV) including the outstanding interest aggregating to '' 329 million got converted into 2,276,837 fully paid up equity shares. The value per equity share is EUR 1.63 and the face value of EUR 1 per share. Pursuant to this conversion, the Company now holds 4,276,837 equity share of AEEBV and the Company continues to be 100% shareholder of AEEBV.

EM VOLUNTARY STRIKE OFF OF ADVANCED ENZYMES MALAYSIA SDN. BHD. (''AEM'')

Effective 8 November 2023, the wholly owned subsidiary AEM was struck off on 8 November 2023 after approval from Registrar of Companies, Malaysia , and status of AEM is now appearing as ''Dissolved’. Consequently, AEM ceases to be the subsidiary of the Company. The Company has written off its investment in equity share capital and loan given by the Company to AEM along with interest receivable and corresponding provision created against investment, loan and interest receivable is also released. There is no impact on the profitability of the Company in the current year.

EM OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries"

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

60 Previous year amounts have been regrouped / reclassified wherever necessary.

---

Mar 31, 2023

a) Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity share having a par value of '' 2 per share. Each holder of equity share is entitled to one vote per share. The final dividend, if any, proposed by Board of Directors is subject to approval by the Shareholders. All shares rank pari passu on repayment of capital in the event of liquidation. Dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting except interim dividend.

b) Shares reserved for issue under options

The Company had reserved issuance of 220,000 Equity shares having face value of '' 2 each (31 March 2022: 220,000) for offering to eligible employees of the Company under Employees Stock Option Scheme (ESOS). The option would vest on graded basis over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria. (refer note 43).

Nature and purpose of reserves Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve. Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

General reserve

General reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid up and not paid up bonus shares.

Dividends

The following dividends were declared and paid by the Company during the year

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

Given that the Company does not have any intention to dispose investments in subsidiaries in the foreseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognised.

NOTE 36EMPLOYEE BENEFITS

The Company contributes to the following post-employment plans in India.

(A) Defined Contribution Plans:

The Company makes contributions towards provident fund and superannuation fund which are in the nature of defined contribution post employment benefit plans. Under the plan, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.

The Company recognised '' 14.56 million for the year ended 31 March 2023 (31 March 2022: '' 13.13 million) towards provident fund and employee deposit linked insurance contribution and '' 3.48 million for the year ended 31 March 2023 (31 March 2022: '' 3.52 million) towards super-annuation fund contribution in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(B) Defined Benefit Plan:

The Company provides for gratuity benefit, which is defined benefit plans, covering all its eligible employees. The Company has taken a Group Gratuity for its employees with the Life Insurance Corporation of India (LIC). Under gratuity policy, the eligible employees are entitled to receive gratuity payments upon their resignation or death (subject to completion of 4.5 years of employment) in lumpsum after deduction of necessary taxes.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at 31 March 2023. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

(b) The Weighted average incremental borrowing rate of 9.25% p.a. for local currency borrowings has been applied for measuring the lease liability at the date of initial application.

(c) The Company incurred '' 10.65 million for the year ended 31 March 2023 (31 March 2022: '' 7.73 million) towards expenses relating to leases. Lease rent incurred not falling under the scope of Ind AS 116 amounted to '' 1.68 million for the year ended 31 March 2023 (31 March 2022: '' 1.63 million), (refer Note 34).

(d) Total cash outflow for leases for year ended 31 March 2023 is '' 7.81 million (31 March 22: '' 5.27 million).

(e) General Description of leasing agreements:

- Leased Assets: Office

- Future Lease rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the term by giving notice in writing.

- Lease agreements are generally cancellable and are renewable by mutual consent on mutually agreed terms.

(f) Please refer note no. 5 for carrying value of Right of Use Assets for the year ended March 31, 2023 NOTE 38

SEGMENT REPORTING Basis of segmentation

The Company operates only in one business segment viz. ‘manufacturing and sales of enzymes’ and hence no separate information for primary segment wise disclosure is required.

Gegraphic information

The geographic information analyses the Company’s revenues and non-current assets by the Company’s country of domicile and other countries. In presenting geographic information, segment revenue has been based on the selling location in relation to sales to customers and segment assets are based on geographical location of assets.

Major customer

Revenue from a customer i.e. a subsidiary based in U.S.A. is '' 379.91 million is in excess of 10% of the Company’s revenue for the year (31 March 2022: '' 348.11 million from a subsidiary based in U.S.A) (Refer note 41 for related party disclosures).

NOTE 39EARNINGS PER SHARE (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal auditor undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee..

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade and other receivables

The Company’s 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 country in which the customer operates, also has an influence on credit risk assessment.

At 31 March 2023, the carrying amount of the Company’s most significant customer accounted for '' 84.33 million (31 March 2022 - '' 64.27 million).

Expected credit loss assessment for customers as at 31 March 2023 and 31 March 2022

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The impairment loss at 31 March 2023 and 31 March 2022 related to certain customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Cash and cash equivalents

The Company held cash and cash equivalents of '' 94.49 million at 31 March 2023 (31 March 2022: '' 134.98 million). The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

Derivatives

There are no derivatives contracts outstanding as on 31 March 2023.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from nonperformance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit and mutual funds which carry no/low mark-to-market risks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

* Guarantees issued by the Company on behalf of subsidiary are with respect to borrowings raised by the subsidiary. These amount will be payable on default by the subsidiary. As of the reporting date, the subsidiary has not defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantee (Refer note: 51).

iv. Market risk

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars and Euros at March 31 would have affected the measurement of financial instruments denominated in US dollars and Euros and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e. foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognized assets and liabilities.

v. Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in

the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date assuming that all other variables, in particular foreign currency exchange rates, remain constant. The period end balances are not necessarily representative of the average debt outstanding during the period.

EMPLOYEE SHARE-BASED PAYMENT PLANS a) Description of share-based payment arrangements:

As at 31 March 2022, the Company has the following share-based payment arrangements for employees.

‘AETL Employee Stock Option Scheme 2015’- (“AETL ESOS 2015”)

AETL ESOS 2015 (amended) provides for the grant of 44,000 stock options to specified employees on 15 February 2017. The AETL ESOS 2015 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee and recommended further changes to AETL ESOS 2015. The Shareholders approved the amended scheme on 15 September 2016. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share of face value of Rs 10 each for every option at an exercise price of '' 300.

220,000 Equity Shares of Face Value of '' 2 each (31 March 2021: 220,000) are reserved for issue under AETL Employee Stock Option Scheme 2015 (AETL ESOS-2015)

b) Measurement of fair value :

The fair values are measured based on the Black-Scholes-option valuation model. Service and non-market performance conditions attached to the arrangements were not taken into account in measuring fair value.

NOTE 43CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

*The Committee of Corporate Social Responsibility had approved the budget of '' 15.52 million (31 March 2022: 14.09 million), the Company contributes to the various projects undertaken by various organisations. During the year the amount spent is '' 3.20 million (31 March 2022: '' 3.07 million) on the ongoing projects. The Company has deposited the balance unspent amount of '' 12.32 million (31 March 2022: '' 11.02 million) in a separate bank account.

NOTE 47ACQUISITION OF ADDITIONAL STAKE IN JC BIOTECH PRIVATE LIMITED

On 18 August 2021, the Company had acquired additional stake of 15% in its subsidiary JC Biotech Private Limited for a consideration of '' 211.25 million. Post this additional acquisition the Company holds 85% stake in the subsidiary. Further on 3 January 2023, the Company has acquired additional stake of 4.83% in its subsidiary JC Biotech Private Limited for a consideration of '' 68.00 million. Post this additional acquisition the Company holds 89.83% stake in the subsidiary.

NOTE 48PROPOSED DIVIDEND

The Board of Directors recommended a final dividend for the financial year 2022-23 of '' 1.00 (31 March 2022: '' 1.00) per equity share of the face value of '' 2/- each, and the same will be paid after approval of shareholders in the Annual General Meeting of the Company.

NOTE 49ACQUISITION OF 51% STAKE IN SCITECH SPECIALITIES PRIVATE LIMITED (“SSPL”)

On 11 January 2021, the Company completed the acquisition of 51% of the paid up equity share capital in SciTech Specialties Private Limited (‘SSPL’) for a total consideration of '' 316.26 million. SSPL is a technology based contract manufacturing company specialising in effervescent granules and tablets.

NOTE 50ACQUISITION OF 50% STAKE IN SAIGANESH ENZYTECH SOLUTIONS PRIVATE LIMITED (“SESPL”)

On 3 January 2023, the Company completed the acquisition of 50% of the paid up equity share capital in Saiganesh Enzytech Solutions Private Limited (‘SESPL’) for a total consideration of '' 59.97 million. SESPL is primarily engaged into extracting Latex from papaya, purifying and providing finish papain enzyme in liquid form (agriculture extraction of Papain enzyme).

NOTE 52 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
Particulars	As at 31 March 2023	As at 31 March 2022
a) Contingent liabilities
Pertains to income tax demand/ matters on account of deductions/ disallowances for earlier years, pending for appeals consequent to order passed against the Company/ demands raised by the Department under Income Tax Act, 1961. Amount paid and adjusted there against and included under Income tax asset '' 98.31 million (31 March 2021: '' 98.31 million).	25.24	25.24
Pertains to Excise Duty and Service Tax demand raised by Commissioner of Central Excise, Customs and Service tax on account of inadmissible CENVAT credit, incorrect product classification and service tax levy on directors'' remuneration for various periods. Amount paid there against and included under note 17 ''Other current assets''.	27.58	27.58

Particulars	As at 31 March 2023	As at 31 March 2022
The Hon’ble Supreme Court of India (“SC”) by their order dated February 28, 2019, in the case of Surya Roshni Limited & others v/s EPFO, set out the principles based on which allowances paid to the employees should be identified for inclusion in basic wages for the purposes of computation of Provident Fund contribution. Subsequently, a review petition against this decision has been filed and is pending before the SC for disposal. In view of the management, the liability for the period from date of the SC order to 31 March 2019 is not significant. Further, pending decision on the subject review petition and directions from the EPFO, the impact for the past period, if any, is not ascertainable and consequently no effect has been given in the accounts. Accordingly, this has been disclosed as a Contingent liability in the financial statements.
	52.82	52.82
The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liability, where applicable in its standalone financial statements. The Company’s management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect of the Company’s results of operations or financial condition.
Particulars	As at 31 March 2023	As at 31 March 2022
b) Commitments
Estimated amount of commitments remaining to be executed
-Capital (net of advances)	84.07	33.57
	84.07	33.57

NOTE 53THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 (‘the Code’) relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

NOTE 55CONVERSION OF LOAN TO ADVANCED ENZYMES EUROPE B.V. (‘AEEBV’) INTO EQUIT

Effective date 7 April 2023, loan given by the Company to Advanced Enzymes Europe B.V. (AEEBV) including the outstanding interest aggregating to '' 329 million got converted into 2,276,837 fully paid up equity shares. The value per equity share is EUR 1.63 and the face value of EUR 1 per share. Pursuant to this conversion, the Company now holds 4,276,837 equity share of AEEBV and the Company continues to be 100% shareholder of AEEBV.

NOTE 56OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any transactions with companies struck off.

(iii) The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries."

(viii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

NOTE 57

Previous year amounts have been regrouped / reclassified wherever necessary.

---

Mar 31, 2018

Note 1:

The Company has decided to sell the lease rights for one of its leasehold land situated at Jalna, Maharashtra. Accordingly, the cost of land and building appurtenant thereto along with the development costs has been classified as non-current assets held for sale under Note 17. The Company is in the process of executing a formal lease deed for the above said land with Maharashtra Industrial Development Corporation.

Note 2:

The Company has availed the deemed cost exemption in relation to the property, plant and equipment on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the accumulated amortisation on 1 April 2016 under the previous GAAP

Note:

The Company has availed the deemed cost exemption in relation to the intangible assets on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date. Refer note below for the gross block value and the accumulated amortisation on April 1, 2016 under the previous GAAP

Note:

The share issue expenses had been incurred by the Company in relation to its Initial Public Offer ("the Offer" or "IPO") of equity shares. The Company had incurred '' 210.79 million (inclusive of service tax) as IPO expenses. Of the above IPO expenses certain expenses (such as legal counsel cost, listing fees and other cost) aggregating '' 3.84 million are directly attributable to the Company. Remaining IPO expenses aggregating '' 206.95 million have been allocated between the Company '' 25.48 million and selling shareholders '' 181.47 million in proportion to the Equity shares allotted to the public as fresh issue by the Company and under Offer for Sale by the selling shareholders. The total amount attributable to the Company has been adjusted towards the securities premium account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the securities premium account post the issue of equity shares. The share of the Selling Shareholders of such expenses has been reimbursed to the Company.

d) Shares reserved for issue under options

The Company had reserved issuance of 220,000 Equity shares of '' 2 each (31 March 2017: 44,000 shares of Rs 10 each; 1 April 2016: Nil) for offering to eligible employees of the Company under Employees Stock Option Scheme (ESOS). The option would vest on graded basis over a maximum period of 4 years or such other period as may be decided by the Employees Stock Compensation Committee from the date of grant based on specific criteria. (Refer note 43)

e) Sub-division of shares

The Shareholders vide a special resolution have approved sub-division of shares of the Company in the ratio of 5 shares of face value of '' 2 each for every existing 1 share of the face value of '' 10 each through postal ballot. The requisite approvals for modification of the Memorandum and Articles of Association of the Company had been accorded by the shareholders on 4 May 2017.

f) Initial public offering

The Company had made an Initial Public Offer (IPO) of 4,594,875 Equity shares of '' 10 each at an issue price of '' 896 per Equity share ('' 810 per Equity share for eligible employees), consisting of fresh issue of 560,405 equity shares and an Offer for Sale of 4,034,470 equity shares by Selling Shareholders. The Equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) via id ADVENZYMES and on BSE Limited (BSE) via Id 540025 on 1 August 2016.

g) Utilisation of IPO proceeds

From the total proceeds of '' 4,114.88 million through an IPO, the Company received proceeds of '' 499.99 million towards fresh issue of 560,405 equity shares of '' 10/- each fully paid up at a premium of '' 886/- per share for 535,714 equity shares and '' 800/- per share for 24,691 equity shares, net of '' 3,614.89 million attributed to the selling shareholders towards 4,034,470 equity shares of '' 10/- each fully paid up at a premium of '' 886/- per share offered by them for sale.

Nature and purpose of reserves Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.

Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013

General reserve

General reserve is created out of the profits earned by the Company by way of transfer from surplus in the Statement of Profit and Loss. The Company can use this reserve for payment of dividend and issue of fully paid up and not paid up bonus shares.

Dividends

The following dividends were declared and paid by the Company during the year

b) Details of security for each type of borrowing as at 31 March 2018

(a) Term loans from banks are secured by

(i) hypothecation charge of present and future movable and immovable assets of the Company; and

(ii) first pari-passu charge by way of equitable/ registered mortgage on all the present and future land and building (immovable properties) of the Company.

(b) Vehicle loans availed from four banks and two financial institutions are secured by charge on vehicles as specified in their respective loan agreements.

c) Terms of repayment of term loans and other loans Term loan from banks

Term loan form bank carries an interest rate of base rate 1% (amounts to 10.50% both for the current and previous years) and is payable in 60 equal monthly instalments of Rs, 2.5 million each along with interest upto 9 November 2020.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered. Any changes in future taxable income would impact the recoverability of deferred tax assets.

During the year, the Company has accounted tax credits in respect of Minimum Alternative Tax ("MAT" credit) of Rs, 117.77 million (31 March 2017: Rs, 123.99 million, 1 April 2016: Rs, 129.70 million) of earlier years. The Company is reasonably certain of availing the said MAT credit in future years against the normal tax expected to be paid in those years.

Given that the Company does not have any intention to dispose investments in subsidiaries in the forseeable future, deferred tax asset on indexation benefit in relation to such investments has not been recognised.

b) Details of security for each type of borrowing as at 31 March 2018

(a) Loans repayable on demand from Banks (Working Capital loans) are secured by first pari passu charge on all existing and future current assets of the Company.

c) Terms of repayment of term loans and other loans Loan repayable on demand

(i) Cash Credit from bank for Rs, 113.65 million (31 March 2017: Rs, 95.37 million; 1 April 2016: Rs, 165.91 million) carries an interest rate of 9% to 12%.

(ii) Packing credit foreign currency loan from bank for Rs, 58.34 million (31 March 2017: Rs, 65.96 million; 1 April 2016: Rs, 53.61 million) carries an interest rate of Libor 100 to 125 bps (31 March 2017: Libor 80 bps; 1 April 2016: Libor 125 to 200 bps).

(iii) Packing credit in local currency from bank for Rs, 36.28 million (31 March 2017: Rs, Nil; 1 April 2016: Rs, Nil) carries an interest rate of 5.25%.

(iv) Working capital demand loan from bank for Rs, 115.00 million (31 March 2017: Rs, 50.00 million; 1 April 2016: Rs, 75.00 million) carries an interest rate in the range of 7.85% to 8.50% p.a. (31 March 2017: 8.20%; 1 April 2016: 9.60% p.a.)

Note:

Dues to micro, small and medium enterprises pursuant to section 22 of the Micro, Small and Medium Enterprises Development Act (MSMED), 2006

The Management has identified enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2018 has been made in the standalone financial statements based on information received and available with the Company.

36 Employee benefits

The Company contributes to the following post-employment plans in India.

(A) Defined Contribution Plans:

The Company makes contributions towards provident fund and superannuation fund which are in the nature of defined contribution post employment benefit plans . Under the plan, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.

The Company recognised Rs 10.60 million for the year ended 31 March 2018 (31 March 2017: Rs, 9.43 million) towards provident fund contribution and Rs 3.48 million for the year ended 31 March 2018 (31 March 2017: Rs, 3.15 million) towards super-annuation fund contribution in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(B) Defined Benefit Plan:

The Company provides for gratuity benefit and compensated absences, which are defined benefit plans, covering all its eligible employees. The Company has taken a Group Gratuity and Compensated Absences policy for its employees with the Life Insurance Corporation of India (LIC). Under gratuity policy, the eligible employees are entitled to receive gratuity payments upon their resignation or death (subject to completion of 4.5 years of employment) in lumpsum after deduction of necessary taxes.

The most recent actuarial valuation of the defined benefit obligation along with the fair valuation of the plan assets in relation to the gratuity scheme was carried out as at 31 March 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation and the plan assets as at balance sheet date:

Assumptions regarding future mortality have been based on published statistics and mortality tables.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

v. Expected future cash flows

The expected future cash flows in respect of gratuity as at 31 March 2018 were as follows

Expected contribution

The expected contributions for defined benefit plan for the next financial year will be in line with the contribution for the year ended 31 March 2018 Rs, 4.03 million

The trustees of the plan have outsourced the investment management of the fund to an insurance company. The insurance company in turn manages these funds as per the mandate provided to them by the trustees and the asset allocation which is within the permissible limits prescribed in the insurance regulations. Due to the restrictions in the type of investments that can be held by the fund, it may not be possible to explicitly follow an asset-liability matching strategy to manage risk actively in a conventional fund.

38 Segment reporting Basis of segmentation

The Company operates only in one primary business segment viz. ''manufacturing and sales of enzymes'' and hence no separate information for primary segment wise disclosure is required.

Geographic information

The geographic information analyses the Company''s revenues and non-current assets by the Company''s country of domicile and other countries. In presenting geographic information, segment revenue has been based on the selling location in relation to sales to customers and segment assets are based on geographical location of assets.

Major customer

Revenue from one customer based in U.S.A is Rs 317.15 million (Previous year: Rs, 343.19 million) out of the total revenue of the Company.

39 Earnings per share (EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

40 Financial instruments 1. Financial instruments - Fair values and risk management A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if their carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used:

C. Financial risk management

The Company has exposure to the following risks arising from

financial instruments:

- Credit risk;

- Liquidity risk; and

- Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade and other receivables

The Company''s 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 country in which the customer operates, also has an influence on credit risk assessment.

At 31 March 2018, the carrying amount of the Company''s most significant customer accounted for Rs 63.30 million (31 March 2017 - Rs 21.98 million; 1 April 2016 - Rs 18.18 million)

Expected credit loss assessment for customers as at 1 April 2016, 31 March 2017 and 31 March 2018

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and applying experienced credit judgement.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue.

The impairment loss at 31 March 2018 and 31 March 2017 related to certain customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Cash and cash equivalents

The Company held cash and cash equivalents of Rs 1.90 million at 31 March 2018 (31 March 2017: Rs 2.73 million, 1 April 2016 : Rs 5.18 million). The cash and cash equivalents are held with bank and financial institution counterparties with good credit ratings.

Derivatives

The derivatives are entered into with bank and financial institution counterparties with good credit ratings.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit which carry no/low mark-to-market risks. The Company monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility

* Guarantees issued by the Company on behalf of subsidiary are with respect to borrowings raised by the subsidiary. These amount will be payable on default by the subsidiary. As of the reporting date, the subsidairy has not defaulted and hence, the Company does not have any present obligation to third parties in relation to such guarantee (Refer note: 54)

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its operations in other countries. The functional currency of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses derivative instruments, i.e, foreign exchange forward contracts to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognized assets and liabilities.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against US dollars and Euros at March 31 would have affected the measurement of financial instruments denominated in US dollars and Euros and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Derivative instruments

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to trade receivable. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

* Deferred Sales Tax scheme is not included in the above since it does not bear any interest rate Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark as applicable to the borrowings summarised above. This calculation assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date assuming that all other variables, in particular foreign currency exchange rates, remain constant. The period end balances are not necessarily representative of the average debt outstanding during the period.

The Company has decided to sell the lease rights for one of its leasehold land situated at Jalna, Maharashtra. Accordingly, the cost of land and building appurtenant thereto along with the development costs has been classified as non-current assets held for sale. The Company is in the process of executing a formal lease deed for the above said land with Maharashtra Industrial Development Corporation (MIDC).

42 Related party relationships, transactions and balances

The table provides the information about the Group''s structure including the details of the subsidiaries and the holding company. The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

a Name of Related Parties

I Subsidiaries including step-down subsidiaries

Advanced Bio-Agro Tech Limited

Advanced Enzytech Solutions Limited

Advanced Enzymes Europe B.V. (w.e.f. 11 July 2017)

JC Biotech Private Limited (w.e.f. 1 December 2016)

Advanced Enzymes USA, Inc.

Evoxx Technologies GmbH (Wholly owned subsidiary of Advanced Enzymes Europe B. V.) (w.e.f. 15 August 2017)

Advanced Enzymes (Malaysia) Sdn. Bhd. (Subsidairy w.e.f. 3 July 2017 up to 11 March 2018) (Wholly owned subsidiary w.e.f.

12 March 2018)

Cal India Foods International (Wholly owned subsidiary of Advanced Enzymes USA, Inc.)

Advanced Supplementary Technologies Corporation (Wholly owned subsidiary of Advanced Enzymes USA, Inc.)

Enzyme Innovation, Inc. (Wholly owned subsidiary of Cal India Foods International)

Dynamic Enzymes, Inc. (Wholly owned subsidiary of Advanced Enzymes USA, Inc.)

Enzyfuel Innovation, Inc. (Wholly owned subsidiary of Advanced Enzymes USA, Inc. dissolved voluntarily w.e.f. 19 September 2017)

II Key Management Personnel (KMP)

Mr. Vasant L Rathi Chariman and Non-executive director

Mr. Chandrakumar L. Rathi Managing director

Mrs. Savita C. Rathi Whole-time director

Mr. Mukund M. Kabra Whole-time director

Mr. Piyush C. Rathi Chief Business Officer

Mr. Beni P Rauka Chief Financial Officer

Mr. Prabal Bordiya (up to 13 February 2017) Company secretary

Mr. Sanjay Basantani (w.e.f. 14 February 2017) Company secretary

Mrs. Rupa Vora (w.e.f. 15 September 2016) Independent Director

Mr. Kedar Desai Independent Director

Mr. Ramesh Mehta Independent Director

Mr. Pramod Kasat Independent Director

Mr. K V Ramakrishna (up to 15 September 2016) Independent Director

Relatives of KMP :

Mrs. Prabha V. Rathi Wife of chairman

Mr. Kishore L. Rathi Brother of Managing director

Mrs. Mangala M. Kabra Mother of Managing director

43 Employee share-based payment plans a) Description of share-based payment arrangements:

As at 31 March 2018, the Company has the following share-based payment arrangements for employees.

AETL Employee Stock Option Scheme 2015''- (""AETL ESOS 2015"")

AETL ESOS 2015 (amended) provides for the grant of 44,000 stock options to specified employees on 15 February 2017. The AETL ESOS 2015 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee and recommended further changes to AETL ESOS 2015. The Shareholders approved the amended scheme on 15 September 2016. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share for every option at an exercise price of Rs, 300.

220,000 Equity Shares of Face Value of Rs, 2 each (31 March 2017: 44,000 shares of Rs, 10 each; 1 April 2016: Nil) are reserved for issue under AETL Employee Stock Option Scheme 2015 (AETL ESOS-2015)

44 Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances.

* The amount has been included under share issue expenses under note 20

46 Capitalization of expenditure

The Company has capitalized the following expenses of revenue nature under "Intangible assets". Consequently, expenses disclosed under the respective note are net of amounts capitalized by the Company.

The Company had incurred the above expenditure on toxicity studies, product characterization, identification, evaluation, technical analysis of data and consultancy services for the purpose of registration of product dossiers under European Food Safety Authority (EFSA) and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Authority, which is mandatory requirement for export of food and non-food enzymes, food flavourings and additives to European countries. The Company will be permitted to sell its registered products; therefore it is considered as product permits to sell in European market. Since the final approvals for product dossiers filed with EFSA are currently awaited, such expenditure has been capitalized as "Intangible assets under development" in the standalone financial statements. Cost have also been incurred towards filing of product dossiers with US Food Drug Authorities (US FDA) for Generally Regarded As Safe (GRAS) for acceptability of food enzymes in the USA. The Company is yet in the process of filing the product dossier which US FDA, such expenditure has been capitalized as "Intangible assets under development" in the standalone financial statements.

This information also complies with the terms of the recognition granted up to 31 March 2019 to the Company''s In- House Research and Development Activities by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, vide their letter No. TU/IV-RD/2159/2016 dated 4 July 2016.

48 Specified Bank Notes Disclosure

The disclosure regarding details of specified bank notes held and transacted during 8 November 2016 to 30 December 2016 has not been made since the requirement does not pertain to financial year ended 31 March 2018. Corresponding amounts as appearing in the audited standalone financial statements for the year ended 31 March 2017 has been disclosed as under:

49 Corporate Social Responsibility

As required by section 135 of Companies Act, 2013 and Rules therein, a Corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year Rs 5.86 million (Year 2016-17 '' 3.78 million).

(b) Amount spent by the Company during the year on purpose other than construction/ acquisition of assets is '' 5.62 million (previous year '' 3.9 million)

50 Acquisition of JC Biotech Pvt. Ltd.

On 1 December 2016, the Company acquired 70% stake JC Biotech Pvt. Ltd. for a total upfront consideration of '' 500.85 million approved by the Board of Directors in its meeting held on 28 October 2016. The Company has funded the acquisition through internal accruals. The Company has paid stamp duty and other related charges amounting to '' 2.25 million, which has been added to the cost of acquisition.

51 Acquisition of Advanced Enzymes (Malaysia) Sdn. Bhd.

("AEM")

On 3 July 2017, the Company completed its acquisition of Advanced Enzymes (Malaysia) Sdn. Bhd. ("AEM") formerly known as Palm Techno Ventures Enzyme Sdn Bhd ("PTVE"), Malaysia by way of an investment of 200,000 Malaysian Ringitt (RM), equivalent to Rs, 3.14 Million, in 200,000 ordinary shares of RM 1.00 each of PTVE i.e. 80% of the paid-up share capital of PTVE. On 13 March 2018, the Company purchased 150,000 ordinary shares of RM 1.00 each of AEM by way of rights issue, equivalent to Rs, 2.60 Million, i.e. 87.50% of the paid-up share capital of AEM. On 30 March 2018, the Company acquired balance 12.50% of the share capital of AEM by way of an investment of

50,000 Malaysian Ringitt (RM), equivalent to Rs, 0.87 Million, in 50,000 ordinary shares of RM 1.00 each, thereby making it a wholly owned subsidiary.

52 Formation of new subsidiary Advanced Enzymes Europe B. V.

On 11 July 2017, the Company has incorporated a wholly owned subsidiary; Advanced Enzymes Europe B.V. in Amsterdam, Netherlands registered with Chamber of Commerce having a paid up share capital of Euro 2 million, equivalent to Rs, 149.85 Million.

53 Proposed Dividend

The Board of Directors recommended a final dividend for the financial year 2017-18 of Rs, 0.50 (31 March 2017: Rs, 0.40) per equity share of the face value of Rs, 2/- each, and the same will be paid after approval of shareholders in the Annual General Meeting of the Company.

For the purposes of reporting as set out in Note 1, we have transitioned our basis of accounting from Indian generally accepted accounting principles ("IGAAP") to Ind AS. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the "transition date"). In preparing our opening Ind AS balance sheet, we have adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables.

Reconciliation of Statement of Cash Flow

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

A Notes to the reconciliation: 1. Security deposits recognised at amortised cost

Under previous GAAP, the interest free security deposits and advances were accounted for at transaction price. Under Ind AS, security deposits are to be measured at fair values at inception, with reference to market rates (i.e. fixed deposit rate), and the difference is to be recognised as prepaid rentals.

2. Provision for sales returns

Under previous GAAP, the Company accounted for sales return as and when the goods were recevied back from the customers.

Under Ind AS, the Company is required to recognise a provision for sales return as a reduction from revenue."

3. Trade and other receivables

Under Indian GAAP, the Group has created provision for impairment of receivables consists only in respect of specific amount for incurred losses. Under Ind-AS, impairment allowance has been determined based on Expected Loss model (ECL).

4. Land Indexation

Under Ind AS, deferred tax is determined with reference to the balance sheet approach. Accordingly, the Company will be required to recognise deferred tax on account of indexation benefit on freehold land.

5. Other deferred tax adjustments :

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temprorary differences which was not required under Indian GAAP.

6. Actuarial gain and loss

Under previous GAAP, the Company recognised remeasurement of defined benefit plans under profit or loss. Under Ind AS, remeasurement of defined benefit plans are recognised in Other Comprehensive Income.

7. Revenue

Under Ind AS, revenue is recognised at the fair value of the consideration received or receivable, after deduction of any trade discounts, volume rebates and any taxes or duties collected on behalf of the government such as sales tax and value added tax except excise duty. Discounts given include rebates and incentives given to customers which have been reclassified from other expenses under Previous GAAP and netted from revenue under Ind AS.

8. Excise duty on sales

Under previous GAAP, revenue from sale of goods was presented net of the excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the Statement of Profit and Loss as an expense.

9. Rent

Under previous GAAP, the land leased in Prithampur was treated as Leasehold Land. Under Ind AS, the same has been classified as an Operating Lease. Accordingly the land has been reclassified from PPE to Prepaid rentals.

10. Others

Other Ind AS adjustments include share based payment charge back to subsidiaries and depreciation on lease hold land,etc

B. Exemptions and exceptions availed B.1 Ind AS mandatory exceptions B.1.1 Estimates

The estimates at 1st April 2016 and 31st March 2017 are consistent with those made for the same dates in accordance with the Indian GAAP (after adjustments to reflect any differences if any, in accounting policies). The Company has made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

1. Investment in equity instruments carried at FVTPL;

2. Determination of the discounted value for financial instruments carried at amortised cost.

B.1.2 De-recognition of financial assets and liabilities

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

B.1.3 Classification and measurement of financial assets

The Company has classified and measured the financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B.2 Ind AS optional exemptions B.2.1 Deemed cost

The Company has elected to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the financial statements as the deemed cost at the date of transition to Ind AS, measured as per the previous GAAP

B.2.2 Deemed cost for investments in subsidiaries

The Company has elected to continue with the carrying value of its investments in subsidiaries as recognised in the financial statements as at the date of transition to Ind AS.

Accordingly, the Company has measured its investments in subsidiaries at their previous GAAP carrying value.

56 Disclosure under Section 186 of the Companies Act, 2013

Note 1:

Purpose of utilisation of above loans 1) Advanced Enzymes USA, Inc.: For repayment/pre-payment of certain loans availed by

Advanced Enzymes USA, Inc.

2) Advanced Enzymes Europe B.V.: For acquisition of evoxx technologies GmbH Loan repayment terms

1) Advanced Enzymes USA, Inc.: 5 quarterly instalments of Rs, 80 million each commencing from quarter ended 30 September 2016. However, the loan was fully repaid by 20 December 2016.

2) Advanced Enzymes Europe B.V.: 18 month moratorium period from August 2017 and January 2018 and then 14 quarterly instalments including interest starting from April 2019 and September 2019 respectively.

Rate of Interest 1) Advanced Enzymes USA, Inc.: 10.50%

2) Advanced Enzymes Europe B.V.: 9.00%

Maximum amount outstanding during the year is Rs, 279.88 million (31 March 2017: Rs, 400.00 million; 1 April 2016: Rs, Nil) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015

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Mar 31, 2017

Note:

The share issue expenses had been incurred by the Company in relation to its Initial Public Offer ("the Offer") of equity shares. The Company has incurred Rs, 210.79 million (inclusive of service tax) as IPO expenses. Of the above IPO expenses certain expenses (such as legal counsel cost, listing fees and other cost) aggregating to Rs,3.84 million are directly attributable to the Company. Remaining IPO expenses aggregating to Rs, 206.95 million, have been allocated between the Company Rs, 25.48 million and selling shareholders Rs, 181.47 million in proportion to the Equity shares allotted to the public as fresh issue by the Company and under Offer for Sale by the selling shareholders. The total amount attributable to the Company has been adjusted towards the securities premium account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilization in the securities premium account post the issue of equity shares. The share of the Selling Shareholders of such expenses has been reimbursed to the Company

1. Earnings per share

The basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares, which may be issued on the conversion of all dilutive potential shares, unless the results would be anti dilutive. The earnings per share is calculated as under:

2. Segment reporting Primary segment

The Company operates only in one primary business segment viz. ''manufacturing and sales of enzymes'' and hence no separate information for primary segment wise disclosure is required.

3. Related Party Disclosures - As per Accounting Standard 18 a) Names of related parties I Subsidiaries including step-down subsidiaries

Advanced Bio-Agro Tech Limited

Advanced EnzyTech Solutions Limited

JC Biotech Private Limited (w.e.f. 1 December 2016)

Advanced Enzymes USA, Inc.

Cal India Foods International (subsidiary of Advanced Enzymes USA, Inc.)

Advanced Supplementary Technologies Corporation (Wholly owned subsidiary of Advanced Enzymes USA, Inc.) Enzyme Innovation, Inc. (Wholly owned subsidiary of Cal India Foods International)

Dynamic Enzymes, Inc. (Wholly owned subsidiary of Advanced Enzymes USA)

Enzyfuel Innovation, Inc. (Wholly owned subsidiary of Advanced Enzymes USA, Inc. w.e.f. 30 December 2015)

II Key Management Personnel (KMP)

Mr. Vasant L Rathi Mr. Chandrakant L. Rathi Mrs. Savita C. Rathi Mr. Mukund M. Kabra Mr. Piyush C. Rathi Mr. Beni P. Rauka

Mr. Prabal Bordiya (up to 13 February 2017)

Mr. Sanjay Basantani (w.e.f. 14 February 2017)

Relatives of KMP :

Mrs. Prabha V. Rathi Mr. Kishore L. Rathi Mrs. Mangala M. Kabra

III Other related parties (entities in which either of the KMP''s have significant influence) with whom transactions have taken place during the year

Advanced Vital Enzymes Private Limited Om Manufacturing Jalna Private Limited Silvertech Trading Company Private Limited Pranoo Financial Services Private Limited

4. Employee share-based payment plans

a) Description of share-based payment arrangements:

As at 31 March 2017, the Company has the following share-based payment arrangements for employees.

''AETL Employee Stock Option Scheme 2015''- ("AETL ESOS 2015")

AETL ESOS 2015 (amended) provides for the grant of 44,000 stock options to specified employees on 15 February 2017. The AETL ESOS 2015 had been formulated by Board of Directors which was further adopted by Nomination and Remuneration committee and recommended further changes to AETL ESOS 2015. The Shareholders approved the amended scheme on 15 September 2016. The plan entitles specified employees to purchase shares in the Company at the stipulated exercise price, subject to compliance with vesting conditions. As per the plan, holders of vested options are entitled to purchase one equity share for every option at an exercise price of Rs, 300.

The Company had incurred the above expenditure on toxicity studies, product characterization, identification, evaluation, technical analysis of data and consultancy services for the purpose of registration of product dossiers under European Food Safety Authority (EFSA) and Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Authority, which is mandatory requirement for export of food and non-food enzymes, food flavorings and additives to European countries. The Company will be permitted to sell its registered products; therefore it is considered as product permits to sell in European market. Since the final approvals for product dossiers filed with EFSA are currently awaited, such expenditure has been capitalized as "Intangible fixed assets under development" in the standalone financial statements. Cost have also been incurred towards filing of product dossiers with US Food Drug Authorities (US FDA) for Generally Regarded As Safe (GRAS) registrations for acceptability of food enzymes in the USA. The Company is in the process of filing the product dossier with US FDA, accordingly, such expenditure has been capitalized as "Intangible fixed assets under development" in the standalone financial statements.

This information also complies with the terms of the recognition granted up to 31 March 2019 to the Company''s In- House Research and Development Activities by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, vide their letter No. TU/IV-RD/2159/2016 dated 4 July 2016.

(b) In relation to the leasehold land held by the Company, the lease agreement has been executed for a period of 30 years with a renewable clause for a further period of 5 years as per the conditions applicable. The lease agreement provides for termination at will by the Company by giving a prior notice period of 3 months.

In relation to other leased facilities, the agreements are executed for a period ranging from 33 months to 62 months with a renewable clause and also provides for termination at will by either party giving a prior notice period of 3 months."

5. Corporate Social Responsibility

As required by section 135 of Companies Act, 2013 and Rules therein, a Corporate social responsibility committee has been formed by the Company. The Company has spent the following amount during the year towards corporate social responsibility (CSR) for activities listed under schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year 2016-17 Rs, 3.78 million (previous year Rs,4.24 million).

(b) Amount spent by the Company during the year on purpose other than construction/ acquisition of assets is Rs,3.9 million (previous year Rs,4.46 million)

6. Acquisition of JC Biotech Pvt. Ltd.

On 1 December 2016, the Company acquired 70% stake JC Biotech Pvt. Ltd. for a total upfront consideration of certificate 500.85 million approved by the Board of Directors in its meeting held on 28 October 2016. The Company has funded the acquisition through internal accruals. The Company has paid stamp duty and other related charges amounting to certificate 2.25 million, which has been added to the cost of acquisition

7. Proposed Dividend

The Board of Directors recommended a final dividend for the financial year 2016-17 of certificate 0.40 per equity share of the face value of certificate 2/- each. Pursuant to the Companies (Accounting Standards) Amendment Rules, 2016 applicable with effect from 1 April 2016, this dividend (including dividend distribution tax) will be recorded and paid post the approval of shareholders in the Annual General Meeting.

Maximum amount outstanding during the year is Rs. 400 million (Previous year - Rs. Nil) as per additional disclosures pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

8. Prior year regrouping / reclassification

The previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s presentation as under:

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Mar 31, 2016

b) Details of security for each type of borrowings as at 31 March 2016_

(a) Term loans from banks are secured by (a) hypothecation charge of present and future movable and immovable fixed assets of the Company; and (b) first pari-passu charge by way of equitable/ registered mortgage on all the present and future land and building (immovable properties) of the Company.

(b) Loans repayable on demand from Banks (Working Capital loans) are secured by first pari passu charge on all existing and future current assets of the Company.

(c) Vehicle loans availed from three banks and one financial institution are secured by charge on vehicles as specified in their respective loan agreements.

The Company had incurred the above expenditure on toxicity studies, product characterization, identification, evaluation, technical analysis of data and consultancy services for the purpose of registration of product dossiers under European Food Safety Authority (EFSA), which is mandatory requirement for International of food enzymes, food flavorings and additives to European countries. The Company will be permitted to sell its registered products; therefore it is considered as product permits to sell in European market. Since the final approvals for product dossiers filed with EFSA are currently awaited, such expenditure has been capitalized as “Intangible assets under development” in the financial statements.

This information also complies with the terms of the recognition granted up to 31 March 2016 to the Company’s In- House Research and Development Activities by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India, vide their letter No. TU/IV-RD/2159/2012 dated 23 July 2012 and 14 January 2014.

1. Lease disclosure as per Accounting Standard-19

(a) As lessee:

Operating lease rental charged to Statement of profit and loss 6.61 6.21

(b) In relation to the leasehold land held by the Company, the lease agreement has been executed for a period of 30 years with a renewable clause for a further period of 5 years as per the conditions applicable. The lease agreement provides for termination at will by the Company by giving a prior notice period of 3 months.

In relation to other leased facilities, the agreements are executed for a period ranging from 33 months to 62 months with a renewable clause and also provides for termination at will by either party giving a prior notice period of 3 months.

2. Previous year comparatives

The previous year figures have been regrouped/ reclassified wherever necessary to correspond with the current year’s presentation.