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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Sun Pharmaceutical Industries Ltd.

Mar 31, 2025

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve. This reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

Securities premium - The amount received in excess of face value of the equity shares is recognised in securities premium. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. It is utilised in accordance with the provisions of the Companies Act, 2013.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

Capital redemption reserve - The Company has recognised capital redemption reserve on buyback of equity shares from its retained earnings. The amount in capital redemption reserve is equal to nominal amount of the equity shares bought back.

General reserve- The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained earnings- The reserve is the profit/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Equity instrument through OCI - The Company has elected to recognise changes in the fair value of certain investment in equity instrument in other comprehensive income. This amount will be reclassified to retained earnings on derecognition of equity instrument.

Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets of the Company''s foreign operations from their functional currencies to the Company''s presentation currency (i.e '') are recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation.

Effective portion of cash flow hedges - The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

NOTE: 39 A. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) '' in Million
	As at March 31, 2025	As at March 31, 2024
i Contingent liabilities
a Claims against the Company not acknowledged as debts	407.6	415.7
b Liabilities disputed - appeals filed with respect to:
Income tax on account of disallowances / additions (Company appeals)*	13,457.5	2,934.4
Sales tax on account of rebate / classification	84.5	84.5
Goods and service tax / Excise duty / service tax on account of valuation / cenvat credit / custom duty	433.8	453.6
ESIC contribution on account of applicability	132.8	132.8
c Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit enjoyed by the Company	3,474.2	3,474.2
d Other matters - state electricity board, Punjab Land Preservation Act related matters etc.	76.3	91.4
Note: includes interest till the date of demand, wherever applicable
e Legal proceedings: The Company and/or its subsidiaries are involved in various legal proceedings, including but not limited to product liability claims, contract disputes, intellectual property disputes, employment claims, antitrust matters, compliance matters, and other legal and regulatory matters relating to the conduct of its business. Some of the key matters are discussed below. Most of the legal proceedings involve complex issues, which are specific to the case and do not have precedents, and, hence, for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. This is due to a number of factors, including the stage of the proceedings and the overall length of the discovery process; the entitlement of the parties to an action to appeal a decision; the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate; the possible need for further legal proceedings to establish the appropriate amount of damages, if any; the settlement posture of the other parties to the litigation; and any other factors that may have a material effect on the litigation. The Company makes its assessment of likely outcomes based on the views of internal legal counsel and in consultation with external legal counsel representing the Company. The Company also believes that disclosure of the amount sought by plaintiffs would not be meaningful because historical evidence indicates that the amounts settled (if any) are significantly different than those claimed by plaintiffs. Some of the legal claims against the Company, if decided against the Company or settled by the Company, may result in significant impact on its standalone financial statements. Antitrust - Lipitor: The Company and certain of its subsidiaries were named as defendants in a number of putative class action lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the subsidiaries violated antitrust laws in connection with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The cases have been transferred to the U.S. District Court for the District of New Jersey for coordinated pre-trial proceedings. Discovery commenced in January 2020 but was stayed in March 2020 pending mediation. Pursuant to the mediatorâs order of June 03, 2021, mediation briefing and oral argument on certain issues were completed in March 2022. Limited discovery as to certain issues resumed in July 2022. Briefing for class certification and summary judgement motions were completed in 2023. In late-November 2023, the court held argument on defendantsâ summary judgement motion and plaintiffsâ class certification motions. On June 6, 2024, the Court granted Ranbaxyâs motion for summary judgment and denied both EPPsâ and DPPsâ motions for class certification. Plaintiffs appealed the grant of summary judgment and the denial of both class certification motions to the Third Circuit. All three appeals are fully briefed before the Third Circuit but oral argument on those appeals has not yet been scheduled. On February 3, 2025, an end payor plaintiff that opted out of Pfizerâs and EPPsâ settlement-filed a motion seeking trial and pretrial dates in the district court. Ranbaxy and Pfizer filed oppositions on February 18, 2025, and February 28, 2025, respectively filed a reply on March 7, 2025, and Ranbaxy and Pfizer both filed sur-replies on March 14, 2025. No argument has been scheduled on this motion. There also was an antitrust case pending in West Virginia state court that mirrored the allegations in the federal case. In that case, by agreement of the parties Sun settled all claims against it, without any admissions, in the amount of USD 8.25 Million. The parties executed a definitive settlement agreement on December 10, 2024, which the court formally approved on December 12, 2024. The definitive settlement agreement makes clear that Ranbaxy denies each and every one of the allegations against it and has not conceded or admitted any liability.

'' in Million
	As at March 31, 2025	As at March 31, 2024
Product Liability - Ranitidine/Zantac MDL: In June 2020, the Company and certain of its subsidiaries were named as defendants in a complaint filed in the Zantac/Ranitidine Multi-District Litigation (âMDLâ) consolidated in the U.S. District Court for the Southern District of Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers, distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. On July 08, 2021, the court granted the generic Defendantsâ motion to dismiss with prejudice. That decision is on appeal. In addition to the federal court proceedings, the Company and two of its affiliates were also named as defendants in state court actions pending California (actions previously pending in New York and Pennsylvania state court were voluntarily dismissed, and actions previously pending in Illinois state court were dismissed on the pleadings with one now on appeal). Finally, certain of the Companyâs subsidiaries were named in various putative class actions pending in three Canadian provinces. The action pending in British Columbia is taking the lead and, in May 2023, the court in that action granted defendantsâ motion to strike and denied plaintiffsâ motion for class certification. Citalopram follow damages claim in the UK: By judgement dated March 25, 2021, the CJEU (highest European court) upheld the fine against Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited in full and ruled that a settlement agreement between Ranbaxy and Lundbeck (and the other agreements between Lundbeck and the other defendants in the case) had been anticompetitive. The Company may now be subject to âfollow-onâ claims in national courts of some countries in Europe. The Company has been served with a claim in the England & Wales, with the National Health Service (âNHSâ) as the Claimant, relating to the delayed entry of generic citalopram. The NHSâs damages case is based upon the premise that, but for the anticompetitive behavior, the NHS would have been able to buy cheaper generic alternatives of citalopram, rather than paying Lundbeck (another co-defendant) the full innovator price. The Company is currently seeking for the claim to be struck out on the basis that the Claimants brought the claim out of time, and a preliminary issues hearing took place on April 24, 2024, to determine the issue. On June 21, 2024, the Company received a decision from the CAT, dismissing the preliminary issue, siding with the Claimants. Sun Pharma and the other Defendants have filed an appeal to this decision. Appeal was heard March 26, 2025 and the outcome is still pending. The parties are awaiting the outcome of that hearing. At this stage it is also unclear how many claims will actually be made in practice in other countries. The Company also believes, based on its internal assessment and that of its independent legal counsel, that it has favorable legal arguments in terms of defending the relevant claim and any other potential future damages claims. Note: Future cash outflows in respect of the above matters are determinable only on receipt of judgements/ decisions pending at various forums/authorities. âIncome tax matters where department has preferred an appeal against favourable orders received by the Company amounted to '' 22,194.4 Million (March 31, 2024: '' 22,194.4 Million). These matters are sub-judice in various forums and pertains to various financial years.
ii Commitments
a Estimated amount of contracts remaining to be executed on capital account [net of advances]â	11,930.1	10,720.1
b Uncalled liability on partly paid investments	0.5	0.5
c Letters of credit for imports	479.3	527.9
âThe Company is committed to pay milestone payments on certain contracts, however, obligation to pay is contingent upon fulfilment of contractual obligation by parties to the contract.
B. Guarantees given by the bankers on behalf of the Company	1,320.6	1,302.3

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximates the fair value because there is wide range of possible fair value measurements and the costs represents estimate of fair value within that range.

#These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive income.

There were no transfers between Level 1 and 2 in the periods.

The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.

NOTE: 43 CAPITAL MANAGEMENT

The Company''s capital management objectives are:

â¢ to ensure the Company''s ability to continue as a going concern; and

â¢ to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt as presented on the face of the financial statements. The Company''s objective for capital management is to maintain an optimum overall financial structure. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holder''s.

(iii) Dividends not recognised at the end of the reporting period

1 The Board of Directors at it''s meeting held on May 22, 2025 has recommended payment of final dividend of '' 5.50 per share of face value of '' 1 each for the year ended March 31, 2025 amounting to '' 13,196.3 Million.

2 This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not recognised as liability.

NOTE: 44 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

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, loans and investments. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

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 significant losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Trade receivables

The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account external and internal risk factors and historical data of credit losses from various customers.

Other than trade receivables, the Company has recognised an allowance of '' 15.3 Million (March 31, 2024: '' 15.3 Million) against past due loans/advance including interest and '' 1,540.0 Million (March 31, 2024: '' 500.0 Million) of other receivables based on assessment regarding its future recoverability.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation. The Company has unutilised working capital lines from banks of '' 29,750.0 Million as on March 31, 2025 (March 31, 2024:

'' 35,780.0 Million).

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Foreign exchange risk

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars, Euros, South African Rand, Brazilian Real and Russian Rouble). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.

(b) Sensitivity

For the years ended March 31, 2025 and March 31, 2024, every 5% strengthening in the exchange rate between the Indian rupee and the respective currencies for the above mentioned financial assets / liabilities would (decrease) / increase the Company''s profit and (decrease) / increase the Company''s equity by approximately '' (6,204.5) Million and '' (5,298.6) Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars, Euros, South African Rand, Brazilian Real and Russian Rouble. The Company uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively, "derivatives") to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.

Hedges of highly probable forecasted transactions

The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded in other comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the statement of profit and loss.

In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net loss of '' 180.1 Million for the year ended March 31, 2025 and net gain of '' 85.5 Million for the year ended March 31, 2024 in other comprehensive income. The Company also recorded hedges as a component of revenue, loss of '' 108.3 Million for the year ended March 31, 2025 and gain of '' 223.6 Million for the year ended March 31, 2024 on occurrence of forecasted sale transaction.

Changes in the fair value of forward contracts and option contracts that economically hedge monetary assets and liabilities in foreign currencies, and for which no hedge accounting is applied, are recognised in the statement of profit and loss. The changes in fair value of the forward contracts and option contracts, as well as the foreign exchange gains and losses relating to the monetary items, are recognised in the statement of profit and loss.

As at March 31, 2025 and March 31, 2024, the Company has loan facilities on fixed interest rates. Hence the Company is not exposed to interest rate risk.

Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company''s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2025, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

NOTE: 47 EMPLOYEE BENEFITS Defined contribution plan

Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and other Funds which covers all regular employees. While both the employees and the Company make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company. The contributions are normally based on a certain percentage of the employee''s salary. Amount recognised as expense in respect of these defined contribution plans, aggregate to '' 1,112.7 Million (March 31, 2024: '' 1,064.0 Million).

Defined benefit plan(a) Gratuity

In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment. The level of benefit provided depends on the member''s length of service and salary at the time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

(b) Pension fund

The Company has an obligation towards pension, a defined benefit retirement plan, with respect to certain employees, who had already retired before March 01, 2013 and will continue to receive the pension as per the pension plan.

The Company have undertaken an obligation to provide financial support towards education expenses of the children of those employees who have lost their lives due to the COVID-19 pandemic.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Other long term benefit plan

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy with corresponding charge to the statement of profit and loss amounting to '' 537.3 Million [March 31, 2024: '' 507.3 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the year end using the ''Projected Unit Credit'' method. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of other long term employee benefit plans are recognised in profit or loss.

b) The Company has given certain premises and plant and machinery under operating lease or leave and license agreements. These are generally not non-cancellable and periods range between 11 months to 5 years under leave and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits where applicable in accordance with the agreed terms.

NOTE: 49 BORROWINGS Details of long term borrowings:

(I) Unsecured loan from related party of '' 109,544.7 Million (March 31, 2024: '' 110,360.1 Million). The loan was taken on March 31, 2021 and is repayable by March 31, 2026. The interest rate is 7.5 % p.a.

No loans were due during the year. Further, the Company has not defaulted on interest payment during the year.

NOTE: 53 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:

a) Litigations [Refer Note 2 (2.2) (m) and Note 39]

b) Revenue [Refer Note 2(2.2)(n)]

c) Impairment of goodwill and intangible assets [Refer Note 2(2.2) (f)]

d) Impairment of Investment in subsidiaries [Refer Note 2(2.2) (g)]

e) Income tax [Refer Note 2(2.2) (r)]

NOTE: 54 REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company has recorded an additional amount of '' 285.2 Million (March 31, 2024: '' 237.5 Million) as deferred revenue pursuant to the requirements of Ind AS 115. Revenue of '' 507.6 Million (March 31,2024: '' 1,383.2 Million) has been recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of the above contracts.

Contract balances of Trade receivables, Contact assets and Contract liabilites as on April 01. 2023 were '' 71,250.2 Million,

'' 231.5 Million and '' 6,934.7 Million respectively.

Contract assets are initially recognised for revenue from sale of goods. Contract liabilities are on account of the upfront revenue received from customer for which performance obligation has not yet been completed.

The performance obligation is satisfied when control of the goods or services are transferred to the customers based on the contractual terms. Payment terms with customers vary depending upon the contractual terms of each contract.

The Company has recognised revenue of '' 148.6 Million (March 31, 2024''535.2 Million) from the amounts included under advance received from customers at the beginning of the year.

NOTE: 55

1 Product related intangibles consisting of trademarks, designs, technical knowhow and other intangible assets are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the management''s best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Company.

2 Exceptional items includes

a) Standalone financial statements for the year ended March 31, 2024 include charge of '' 1,492.1 Million towards impairment of an acquired intangible asset under development.

b) The Company''s subsidiary Ranbaxy, Inc., and its former subsidiaries Ranbaxy Pharmaceuticals, Inc. and Ranbaxy Laboratories Limited (collectively, "Ranbaxy"), were named as defendants in a lawsuit brought by the State of West Virginia alleging that Ranbaxy violated West Virginia antitrust and consumer protection laws in connection with

a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The case was pending in the Circuit Court of Mason County, West Virginia. The parties conducted limited fact discovery and served expert disclosures, and the case was scheduled to begin trial on December 11, 2023. With a view to resolve this dispute and avoid uncertainty, Ranbaxy and the State of West Virginia executed a binding term sheet embodying a comprehensive settlement for an amount of USD 8.39 Million (equivalent to '' 698.1 Million) including legal costs during the year ended March 31, 2024. The parties executed a definitive settlement agreement on December 10, 2024, which the court formally approved on December 12, 2024. The definitive settlement agreement makes clear that Ranbaxy denies each and every one of the allegations against it and has not conceded or admitted any liability.

3 In May 2022, FDA inspected Sun Pharma''s Halol facility, and the inspection was classified as Official Action Indicated ("OAI") in August 2022. Subsequently, in December 2022, FDA placed the Halol facility on Import Alert 66-40; however, subject to conditions, certain Halol-manufactured finished drug products were exempted from the Import Alert. In December 2022, US FDA issued a Warning Letter summarizing violations of current Good Manufacturing Practice ("cGMP") at the facility (amended in October 2023). The Company is taking corrective measures necessary to get the facility back to fully compliant status.

4 In September 2013, FDA had placed Sun Pharma''s Mohali facility on Import Alert; the site was also subjected to certain provisions of the Consent Decree of Permanent Injunction entered against Ranbaxy Laboratories Ltd. in January 2012 (Ranbaxy Laboratories Ltd. was merged with Sun Pharma in March 2015). In March 2017, FDA removed the Import Alert on Mohali facility and indicated that the site was in substantial compliance with the provisions mentioned in the Consent Decree. In August 2022, FDA inspected the Mohali facility, and the inspection was classified as OAI. In April 2023, FDA issued a Consent Decree Correspondence/ Non-Compliance letter to the Mohali facility in which FDA directed the Company to take certain corrective actions at the Mohali facility, and certain actions before releasing finished

drug product batches into the United States. These actions include, but are not limited to, retaining an independent cGMP expert to conduct batch certifications of drug products manufactured at the Mohali facility for shipment to the U.S. market.

5 In December 2023, FDA inspected Sun Pharma''s Dadra facility and has subsequently determined the inspection classification status of this facility as Official Action Indicated (OAI). In June 2024, US FDA issued a Warning Letter summarizing violations of cGMP at the facility. The Company is taking corrective measures necessary to get the facility back to fully compliant status.

6 The Company has only one reportable segment namely ''Pharmaceuticals''. In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these standalone financial statements.

7 The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the Government. Certain sections of these Codes came into effect on May 03, 2023. However, the final rules / interpretation have not been issued. The Company will assess the impact of these Codes and give effect in the standalone financial statements when the Rules/Schemes thereunder are notified.

8 Corporate social responsibility (CSR)

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company''s CSR Policy and the Annual Action Plan. Company''s Annual Action Plan for the financial year 2024-25 covered CSR activities in the areas -Healthcare; Education; Environment Conservation; Disaster Relief and Rural Development Programme.

Mobile Healthcare Unit This is an ongoing activity, and a portion of the funds allocated for the project this year remained unutilised due to changes in circumstances. These included rescheduling of planned activities and dependencies on external stakeholders.

An amount of '' 72.4 million was allocated to ongoing projects and remained unspent as of March 31, 2025. It has been transferred to the Unspent CSR Account for FY 2024-25 within the prescribed timelines, in accordance with the provisions of Section 135 of the Companies Act, 2013.

9 The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment includes a wide range of possible impacts on the Company due to both physical and transition risks. Even though the Company believes its business model and products will still be viable after the transition to a low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the financial statements. Even though climate-related risks might not currently have a significant impact on measurement, the Company is closely monitoring relevant changes and developments, such as new climate-related legislation.

10 The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that in respect of two softwares the audit trail feature for certain changes made using privileged/ administrative access rights was enabled during the year. Further no instance of audit trail feature being tampered with was noted in respect of accounting software(s) where the audit trail has been enabled. Additionally, in respect of the financial year 2023-24 the Company has preserved the requirements of recording audit trail to the extent it was enabled and recorded in respect of that year.

11 As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries, Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively "Transferor Companiesâ), with Sun Pharmaceutical Industries Limited ("Transferee Companyâ) to be effective from such date as may be decided under the authorisation by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee Company and / or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.

13 No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

14 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

15 The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person. No trade or other receivable are due from directors of the Company either severally or jointly with any other person.

16 The Company does not have any 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).

17 The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of security of current assets.

18 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

19 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

However, the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on an arms length basis following a due approval process.

Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

20 The management has evaluated the likely impact of prevailing uncertainties relating to imposition or enhancement of reciprocal tariffs for imports in the United States of America and believes that there are no material impacts on the standalone Ind AS financial statements of the Company for the year ended March 31, 2025. However, the management will continue to monitor the situation from the perspective of potential impact on the operations of the Company.

21 The Company has complied with the number of layers prescribed under the Companies Act, 2013.

22 During the year, the Company has not revalued its property, plant and equipment (including right-of-use assets) or intangibles or both.

25. Relationship with Struck off Companies

The Company does not have any transactions and balances with companies which are struck off except shares held by 35 shareholders holding 27,037 shares (March 31, 2024 - 38 shareholders holding 30,659 shares) having face value of '' 1 per share.

26. Figures for previous year have been regrouped / reclassified wherever considered necessary.

Ind AS- 24 - âRELATED PARTY DISCLOSURES"Disclosure of Material related party transaction as per Company''s policy

c) Revenue from contracts with customer - The transactions are made to related parties on the same terms as applicable to third parties in an arm''s length transaction and in the ordinary course of business. The Company mutually negotiates and agrees sales price, discount and payment terms with the related parties by benchmarking the same to transactions with non-related parties, who purchase goods and services of the Company.

d) Purchase of Goods - Purchases are made from related parties on the same terms as applicable to third parties in an arm''s length transaction and in the ordinary course of business. The Company mutually negotiates and agrees purchase price and payment terms with the related parties by benchmarking the same to sale transactions with non-related parties entered into by the counter-party and similar purchase transactions entered into by the Company with the other nonrelated parties.

e) Receiving of Service - The service received are mainly in nature of conversion charges, royalty payments, marketing expenses and other regulatory filing expenses. The Company mutually negotiates and agrees the price and payment terms with the related parties by benchmarking the same to the services to non-related parties entered into by the counter-party and similar services received by the Company from other non-related parties.

f) Rendering of Service - The services provided are mainly in nature of conversion charges, R&D charges and royalty income. The Company mutually negotiated and agrees the price and payment terms with the related parties by benchmarking the same to the services to non-related parties entered into by the counter-party and similar services received by the Company from other non-related parties.

Mar 31, 2024

The Company as a part of its ongoing initiative of network strategy and optimisation of manufacturing facilities has identified divestment of its Goa and Silvasa facility. The plan involves transferring above assets and liabilities to a prospective buyer. The transfer is expected to be completed during the year 2024-25 and hence, these have been classified as held for sale. These assets and liabilities have been carried at cost as the same is lower than the fair value expected out of sale.

(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) Refer Note 55 (1)

(iii) The recoverable amount of Goodwill has been determined based on value in use calculations which uses cash flow projections covering generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and Management''s expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current market assessments of time value of money . The average growth rate used in extrapolating cash flows beyond the planning period was 5.0% for the year ended March 31, 2024 and 5.0% for the year ended March 31, 2023. Discount rate reflects the current market assessment of the risks specific to a CGU or group of CGUs. The discount rate is estimated on the weighted average cost of capital for respective CGU or group of CGUs. Discount rate used was 9.1% for the year ended March 31, 2024 and 9.4% for the year ended March 31, 2023. The management believes that any reasonable possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.

to ? 9,820.3 Million (March 31, 2023: ? 8,345.9 Million). The impact of write downs are recognised in the statement of profit and loss. The inventories with overseas contract manufacturers are stated as per the quantitative confirmations received from the respective parties.

(ii) The cost of inventories recognised as an expense is disclosed in Notes 32, 33 and 36 and as purchases of stock-in-trade in the statement of profit and loss.

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

General reserve - The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Retained earnings - The reserve is the profit/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets of the Company''s foreign operations from their functional currencies to the Company''s presentation currency (i.e. ^) are recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation.

NOTE: 39 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) ? in Million
	As at March 31, 2024	As at March 31, 2023
i Contingent liabilities
a Claims against the Company not acknowledged as debts	415.7	573.1
b Liabilities disputed - appeals filed with respect to:
Income tax on account of disallowances / additions (Company appeals) *	2,934.4	2,831.6
Sales tax on account of rebate / classification	84.5	138.1
Goods and service tax / Excise duty / service tax on account of valuation / cenvat credit / custom duty	453.6	947.3
ESIC contribution on account of applicability	132.8	124.5
c Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit enjoyed by the Company	3,474.2	3,474.2
d Other matters - state electricity board, Punjab Land Preservation Act related matters etc.	91.4	91.0
Note: includes interest till the date of demand, wherever applicable
e Legal proceedings The Company and/or its subsidiaries are involved in various legal proceedings, including but not limited to product liability claims, contract disputes, employment claims, antitrust matters, compliance matters, and other legal and regulatory matters relating to the conduct of its business. Some of the key matters are discussed below. Most of the legal proceedings involve complex issues, which are specific to the case and do not have precedents, and, hence, for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. This is due to a number of factors, including the stage of the proceedings and the overall length of the discovery process; the entitlement of the parties to an action to appeal a decision; the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate; the possible need for further legal proceedings to establish the appropriate amount of damages, if any; the settlement posture of the other parties to the litigation; and any other factors that may have a material effect on the litigation. The Company makes its assessment of likely outcomes based on the views of internal legal counsel and in consultation with external legal counsel representing the Company. The Company also believes that disclosure of the amount sought by plaintiffs would not be meaningful because historical evidence indicates that the amounts settled (if any) are significantly different than those claimed by plaintiffs. Some of the legal claims against the Company, if decided against the Company or settled by the Company, may result in significant impact on its standalone financial statements. Antitrust - Lipitor: The Company and certain of its subsidiaries were named as defendants in a number of putative class action lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the subsidiaries violated antitrust laws in connection with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The cases have been transferred to the U.S. District Court for the District of New Jersey for coordinated pre-trial proceedings. Discovery commenced in January 2020 but was stayed in March 2020 pending mediation. Pursuant to the mediator''s order of June 03, 2021, mediation briefing and oral argument on certain issues were completed in March 2022. Limited discovery as to certain issues resumed in July 2022. Briefing for class certification and summary judgement motions were completed in 2023. In late-November 2023, the court held argument on defendants'' summary judgement motion and plaintiffs'' class certification motions. Currently, the court has yet to issue a decision on either motion. There also was an antitrust case pending in West Virginia state court that mirrored the allegations in the federal case. In that case, by agreement of the parties Sun settled all claims against it, without any admissions, in the amount of USD 8.25 Million. The parties are in the process of finalising the written settlement agreement documentation.

? in Million
		As at March 31, 2024		As at March 31, 2023
Product Liability - Ranitidine/Zantac MDL: In June 2020, the Company and certain of its subsidiaries were named as defendants in a complaint filed in the Zantac/Ranitidine Multi-District Litigation (âMDLâ) consolidated in the U.S. District Court for the Southern District of Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers, distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. On July 08, 2021, the court granted the generic Defendants'' motion to dismiss with prejudice. That decision is on appeal. In addition to the federal court proceedings, the Company and two of its affiliates were also named as defendants in state court actions pending in Pennsylvania, and California (actions previously pending in New York state court were voluntarily dismissed, and actions previously pending in Illinois state court were dismissed on the pleadings). Finally, certain of the Company''s subsidiaries were named in various putative class actions pending in three Canadian provinces. The action pending in British Columbia is taking the lead and, in May 2023, the court in that action granted defendants'' motion to strike and denied plaintiffs'' motion for class certification. Citalopram follow damages claim in the UK: By judgement dated 25 March 2021, the CJEU (highest European court) upheld the fine against Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited in full and ruled that a settlement agreement between Ranbaxy and Lundbeck (and the other agreements between Lundbeck and the other defendants in the case) had been anticompetitive. The Company may now be subject to âfollow-onâ claims in national courts of some countries in Europe. The Company has been served with a claim in the England & Wales, with the National Health Service (âNHSâ) as the Claimant, relating to the delayed entry of generic citalopram. The NHS''s damages case is based upon the premise that, but for the anticompetitive behavior, the NHS would have been able to buy cheaper generic alternatives of citalopram, rather than paying Lundbeck (another co-defendant) the full innovator price. The Company is currently seeking for the claim to be struck out on the basis that the Claimants brought the claim out of time, and a preliminary issues hearing took place on April 24, 2024, to determine the issue. The parties are awaiting the outcome of that hearing. At this stage it is also unclear how many claims will actually be made in practice in other countries. Accordingly, at this early stage, the Company is unable to estimate the potential liability which may arise on account of follow-on claims. The Company also believes, based on its internal assessment and that of its independent legal counsel, that it has favorable legal arguments in terms of defending the relevant claim and any other potential future damages claims. Note: Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities. * Income tax matters where department has preferred an appeal against favourable orders received by the Company amounted to '' 22,194.4 Million (March 31, 2023: '' 22,284.7 Million). These matters are sub-judice in various forums and pertains to various financial years.
ii Commitments
a Estimated amount of contracts remaining to be executed on capital account [net of advances] *		10,720.1		32,222.0
b Uncalled liability on partly paid investments		0.5		0.5
c Letters of credit for imports		527.9		1,496.3
* The Company is committed to pay milestone payments on certain contracts, however, obligation to pay is contingent upon fulfilment of contractual obligation by parties to the contract.
iii Guarantees given by the bankers on behalf of the Company		1,302.3		1,197.4
NOTE: 40 RESEARCH AND DEVELOPMENT EXPENDITURE ? in Million
	Year ended March 31, 2024		Year ended March 31, 2023
Revenue, net (excluding depreciation) (Refer Note 37)	18,147.9		15,980.1
Capital	436.7		507.0

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive income.

There were no transfers between Level 1 and 2 in the periods.

The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.

NOTE: 43 CAPITAL MANAGEMENT

The Company''s capital management objectives are:

â¢ to ensure the Company''s ability to continue as a going concern; and

â¢ to provide an adequate return to shareholders through optimisation of debts and equity balance.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holder''s.

(iii) Dividends not recognised at the end of the reporting period

1. The Board of Directors at it''s meeting held on May 22, 2024 has recommended payment of final dividend of ? 5.0 per share of face value of ? 1 each for the year ended March 31, 2024. The same amounts to ? 11,996.7 Million.

2. This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and hence not recognised as liability.

NOTE: 44 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

Credit risk

Investments

Trade receivables

Other than trade receivables, the Company has recognised an allowance of ? 15.3 Million (March 31, 2023: ? 15.3 Million) against past due loans/advance including interest and ? 500.0 Million (March 31, 2023: ? 500.0 Million) of other receivables based on assessment regarding its future recoverability.

Liquidity risk

The Company has unutilised working capital lines from banks of ? 35,780.0 Million as on March 31, 2024 (March 31, 2023: ? 35,780.0 Million).

Market risk

Foreign exchange risk

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses (primarily in US Dollars, Euros, South African Rand, Brazilian Real and Russian Ruble). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.

(b) Sensitivity

For the years ended March 31, 2024 and March 31, 2023, every 5% strengthening in the exchange rate between the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would (decrease)

/ increase the Company''s profit and (decrease) / increase the Company''s equity by approximately ^ (5,298.6) Million and ^ (2,685.5) Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.

(c) Derivative contracts

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars, Euros, South African Rand, Brazilian Real and Russian Ruble. The Company uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively, âderivativesâ) to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.

Hedges of highly probable forecasted transactions

In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net gain of ? 85.5 Million for the year ended March 31, 2024 and net loss of ? 192.4 Million for the year ended March 31, 2023 in other comprehensive income. The Company also recorded hedges as a component of revenue, gain of ? 223.6 Million for the year ended March 31, 2024 and loss of ? 1,076.9 Million for the year ended March 31, 2023 on occurrence of forecasted sale transaction.

Interest rate risk

As at March 31, 2024 and March 31, 2023, the Company has loan facilities on fixed interest rates. Hence the Company is not exposed to interest rate risk.

Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company''s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2024, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

NOTE: 47 EMPLOYEE BENEFITS Defined contribution plan

Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and other Funds which covers all regular employees. While both the employees and the Company make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company. The contributions are normally based on a certain percentage of the employee''s salary. Amount recognised as expense in respect of these defined contribution plans, aggregate to ? 1,064.0 Million (March 31, 2023: ? 951.9 Million).

Defined benefit plan

(a) Gratuity

In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme.

It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment.

The level of benefit provided depends on the member''s length of service and salary at the time of retirement/termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

(b) Pension fund

(c) COVID-19 Employee children education support

The Company has undertaken an obligation to provide financial support towards education expenses of the children of those employees who have lost their lives due to the COVID-19 pandemic.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

(i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.

(ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

(iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

(iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Other long term benefit plan

? 234.8 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

Obligation in respect of defined benefit plan and other long term employee benefit plans are actuarially determined as at the year end using the âProjected Unit Credit'' method. Gains and losses on changes in actuarial assumptions relating to defined benefit obligation are recognised in other comprehensive income whereas gains and losses in respect of other long term employee benefit plans are recognised in the statement of profit and loss.

a) The Company has recognised a lease liability measured at the present value of the remaining lease payments, and right-of-use (ROU) asset at an amount equal to lease liability (adjusted for any related prepayments). Management has exercised judgement in determining whether extension and termination options are reasonably certain to be exercised. Expenses relating to short-term leases and low-value assets for year ended March 31, 2024 is ? 48.1 Million (March 31, 2023: ^ 41.2 Million).

b) The Company has given certain premises and plant and machinery under operating lease or leave and license

agreements. These are generally not non-cancellable and periods range between 11 months to 5 years under leave and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits where applicable in accordance with the agreed terms.

NOTE: 49 BORROWINGS Details of long term borrowings:

(I) Unsecured loan from related party of ? 110,360.1 Million (March 31, 2023: ? 75,867.3 Million). The loan was taken on March 31, 2021 and is repayable by March 31, 2026. The interest rate is 7.5 % p.a.

No loans were due during the year. Further, the Company has not defaulted on interest payment during the year. NOTE: 50 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE âAâ

NOTE: 53 USE OF ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statement is included in the following notes:

a) Litigations [Refer Note 2 (2.2) (m) and Note 39]

b) Revenue [Refer Note 2(2.2)(n)]

c) Impairment of goodwill and intangible assets [Refer Note 2(2.2) (f)]

d) Impairment of Investment in subsidiaries [Refer Note 2(2.2) (g)]

e) Income tax [Refer Note 2(2.2) (r)]

The Company has recorded an additional amount of ? 237.5 Million (March 31, 2023: ? 641.2 Million) as deferred revenue pursuant to the requirements of Ind AS 115. Revenue of ? 1,383.2 Million (March 31,2023: ? 2,241.3 Million) has been recognised as Revenue from contracts with customers pursuant to completion of performance obligation in respect of the above contracts.

Contract balances of Trade receivables, Contact assets and Contract liabilities as at April 01, 2022 were ? 42,451.6 Million,

? 345.3 Million and ? 11,312.4 Million respectively.

The Company has recognised revenue of ? 535.2 Million (March 31, 2023: ? 3,239.1 Million) from the amounts included under advance received from customers at the beginning of the year.

NOTE: 55

1. Product related intangibles consisting of trademarks, designs, technical knowhow and other intangible assets are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the management''s best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Company.

2. Exceptional items includes

(a) Standalone financial statements for the year ended March 31, 2024 include charge of ? 1,492.1 Million towards impairment of an acquired intangible asset under development.

(b) The Company''s subsidiary Ranbaxy, Inc., and its former subsidiaries Ranbaxy Pharmaceuticals, Inc. and Ranbaxy Laboratories Limited (collectively, âRanbaxyâ), were named as defendants in a lawsuit brought by the State of West Virginia alleging that Ranbaxy violated West Virginia antitrust and consumer protection laws in connection with a 2008 patent litigation settlement agreement with Pfizer concerning generic Lipitor (Atorvastatin). The case was pending in the Circuit Court of Mason County, West Virginia. The parties conducted limited fact discovery and served expert disclosures, and the case was scheduled to begin trial on December 11, 2023. With a view to resolve this dispute and avoid uncertainty, Ranbaxy and the State of West Virginia executed a binding term sheet embodying a comprehensive settlement for an amount of USD 8.39 Million (equivalent to '' 698.1 Million) including legal costs during the year ended March 31, 2024. The definitive settlement agreement will make clear that Ranbaxy denies each and every one of the allegations against it and has not conceded or admitted any liability.

(c) Standalone financial statements for the year ended on March 31, 2023 includes charge on account of impairment of investments in a wholly owned subsidiary amounting to ^ 29,377.9 Million pursuant to assessment of recoverability due to changes in certain internal and external economic indicators.

3. In May 2022, FDA inspected Sun Pharma''s Halol facility, and the inspection was classified as Official Action Indicated (âOAIâ) in August 2022. Subsequently, in December 2022, FDA placed the Halol facility on Import Alert 66-40; however, subject to certain conditions, certain Halol-manufactured finished drug products were exempted from

the Import Alert. The Company is taking all corrective measures necessary to address the observations and is in communication with the FDA regarding the same.

4. In September 2013, FDA placed Sun Pharma''s Mohali facility on Import Alert; the site was also subjected to certain provisions of the Consent Decree of Permanent Injunction entered against Ranbaxy Laboratories Ltd. in January 2012 (Ranbaxy Laboratories Ltd. was merged with Sun Pharma in March 2015). In March 2017, FDA removed the Import Alert on Mohali facility and indicated that the site was in substantial compliance with the current Good Manufacturing Practice (âcGMPâ) provisions mentioned in the Consent Decree. In August 2022, FDA inspected the Mohali facility, and the inspection was classified as OAI. Subsequently, in April 2023, FDA issued a Consent Decree Correspondence/ Non-Compliance letter to the Mohali facility in which FDA directed the Company to take certain corrective actions at the Mohali facility, and certain actions before releasing finished drug product batches into the United States. These actions include, but are not limited to, retaining an independent cGMP expert to conduct batch certifications of drug products manufactured at the Mohali facility for shipment to the U.S. market.

5. In December 2023, FDA inspected Sun Pharma''s Dadra facility and has subsequently determined the inspection classification status of this facility as Official Action Indicated (OAI). The Company is in communication with FDA to resolve the inspectional observations that resulted in OAI status.

6. The Company has only one reportable segment namely âPharmaceuticals''. In accordance with Ind AS 108 âOperating Segmentsâ, segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these standalone financial statements.

7. The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the Government. The Company will assess the impact of these Codes and give effect in the standalone financial statements when the Rules/Schemes thereunder are notified.

8. Corporate social responsibility (CSR)

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company''s CSR Policy and the Annual Action Plan. Company''s Annual Action Plan for the financial year 2023-24 covered CSR activities in the areas - Healthcare; Education; Environment Conservation; Drinking Water Project; Disaster Relief and Rural Development Programme.

9. The Company considers climate-related matters in estimates and assumptions, where appropriate. This assessment includes a wide range of possible impacts on the Company due to both physical and transition risks. Even though the Company believes its business model and products will still be viable after the transition to a low-carbon economy, climate-related matters increase the uncertainty in estimates and assumptions underpinning several items in the financial statements. Even though climate-related risks might not currently have a significant impact on measurement, the Company is closely monitoring relevant changes and developments, such as new climate-related legislation.

10. On March 01, 2023, the Company disclosed an information security incident that impacted some of the Company''s IT assets. The Company promptly took steps to contain and remediate the impact of the information security incident, including employing appropriate containment protocols to mitigate the threat, employing enhanced security measures and utilising global cyber security experts to ensure the integrity of the Company''s IT systems'' infrastructure and data. As part of the containment measures, the Company proactively isolated its network and initiated recovery procedures. As a result of these measures, certain business operations were also impacted.

The Company has since strengthened its cybersecurity infrastructure and implemented improvements to its cyber and data security systems to safeguard against such risks in the future. The Company is also implementing certain long-term measures to augment its security controls systems across the organisation. The Company worked with legal counsel across relevant jurisdictions to notify applicable regulatory and data protection authorities, where considered required, and the Company believes there is no material legal non-compliance by the Company on account of the information security incident. The Company believes that all known impacts on its financial statements on account of this incident have been considered.

11. The Company has used accounting software for maintaining its books of account which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled for certain changes made using privileged/ administrative access rights to all the accounting software and/or the underlying SQL database. Further no instance of audit trail feature being tampered with was noted in respect of accounting software.

12. As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries,

Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively âTransferor Companiesâ), with Sun Pharmaceutical Industries Limited (âTransferee Companyâ) to be effective from such date as may be decided under the authorisation by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee Company and / or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.

Current assets and current liabilities are excluding held for sale assets and liabilities.

14. No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

15. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

16. The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person. No trade or other receivable are due from directors of the Company either severally or jointly with any other person.

17. The Company does not have any 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).

18. The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of security of current assets.

19. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

20. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general corporate purposes / working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on an arms length basis following a due approval process.

Further, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

23. Relationship with Struck off Companies

The Company does not have any transactions and balances with companies which are struck off except shares held by 38 shareholders holding 30,659 shares (March 31, 2023: 10 shareholders holding 11,889 shares) having face value of ? 1 per share.

24. Figures for previous year have been regrouped / reclassified wherever considered necessary.

Mar 31, 2023

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

General reserve: The reserve arises on transfer portion of the net profit pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Debt instrument through OCI - This represents the cumulative gain and loss arising on fair valuation of debt instruments measured through other comprehensive income. This will be reclassified to statement of profit or loss on derecognition of debt instrument.

Foreign currency translation reserve - Exchange differences relating to the translation of the results and the net assets of the Company''s foreign operations from their functional currencies to the Company''s presentation currency (i.e. ^) are recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation.

The cumulative gain or loss recognised and accumulated under the cash flow hedge reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive income.

There were no transfers between Level 1 and 2 in the periods.

The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.

NOTE: 44 FINANCIAL RISK MANAGEMENT

Credit risk

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 significant 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 receivables, the Company has recognised an allowance of ? 15.3 Million (March 31, 2022: ? 15.3 Million) against past due loans including interest and ? 500 Million (March 31, 2022: ? 500.0 Million) of other receivables based on assessment regarding its future recoverability.

Liquidity risk

The Company has unutilised working capital lines from banks of ? 35,780.0 Million as on March 31, 2023 (March 31, 2022:

? 36,030.0 Million).

Market risk

Foreign exchange risk

b) Sensitivity

For the years ended March 31, 2023 and March 31, 2022, every 5% strengthening in the exchange rate between the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities would (decrease) / increase the Company''s profit and (decrease) / increase the Company''s equity by approximately ? (2,685.5) Million and ? (651.9) Million respectively. A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.

c) Derivative contracts

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars, Euros, South African Rand, Brazilian Real and Russian Rouble. The Company uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively, âderivativesâ) to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.

Hedges of highly probable forecasted transactions

In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net loss of ? 192.4 Million for the year ended March 31, 2023 and net loss of ? 492.4 Million for the year ended March 31, 2022 in other comprehensive income. The Company also recorded hedges as a component of revenue, loss of ? 1,076.9 Million for the year ended March 31, 2023 and gain of ? 1,128.3 Million for the year ended March 31, 2022 on occurrence of forecasted sale transaction.

Interest rate risk

As at March 31, 2023 and March 31, 2022, the Company has loan facilities which are either on fixed interest rates or are managed by interest rate swaps. Hence the Company is not exposed to interest rate risk.

Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company''s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2023, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

NOTE: 47 EMPLOYEE BENEFIT PLANS Defined contribution plan

Defined benefit plana) Gratuity

In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment. The level of benefit provided depends on the member''s length of service and salary at the time of retirement/ termination age. Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end. Each year, the Company reviews the level of funding in gratuity fund and decides its contribution. The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

b) Pension fund

c) COVID-19 Employee children education support

The Company have undertaken an obligation to provide financial support towards education expenses of the children of those employees who have lost their lives due to the COVID-19 pandemic.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

Other long term benefit plan

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy with corresponding charge to the statement of profit and loss amounting to ? 234.8 Million [March 31, 2022: ? 539.5 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

The Company has recognised revenue of ? 3,239.1 Million from the amounts included under advance received from customers at the beginning of the year.

NOTE: 55

1 Intangible assets consisting of trademarks, designs, technical knowhow, non-compete fees and other intangible assets are available to the Company in perpetuity. The amortisable amount of intangible assets is arrived at based on the management''s best estimates of useful lives of such assets after due consideration as regards their expected usage, the product life cycles, technical and technological obsolescence, market demand for products, competition and their expected future benefits to the Company.

2 Exceptional items includes

a) The Company has recognised an impairment charge of ? 29,377.9 Million in relation to the Company''s investment in equity and preference shares of Sun Pharma Holdings, Mauritius, (âSPHâ) amounting to ? 127,673.7 Million in the standalone financial statements for the year ended March 31, 2023.

Investment by SPH in its step down subsidiaries, primarily in Taro, are determined as CGU as they derive their revenue from pharmaceutical products.

The recoverable value of CGU represents its Value-in-use. The Value-in-use is determined using the discounted cash flow method on projections using a post-tax rate of 8% while the post-tax discount rate in previous year was 7%. As per management assessment, the fair valuation of the CGU is lower than its carrying value which is on account of various reasons including but not limited to pricing pressure in the United States, delays in launch of generic products, etc. Accordingly, the valuation gap has been addressed by impairment to that extent.

b) Standalone financial statements for the year ended March 31, 2022 include a charge of ? 1,655.7 Million towards impairment of an acquired intangible asset under development.

c) The Company and certain of its subsidiaries were defendants in a number of class action lawsuits brought by purchasers and payors in the U.S. alleging violation of antitrust laws with respect to its ANDAs for Valganciclovir, Valsartan and Esomeprazole. The cases were transferred to the U.S. District Court for the District of Massachusetts for coordinated proceedings. With a view to resolve the dispute and avoid uncertainty, a settlement without any admission of guilt or violation of any statute, law, rule or regulation, or of any liability

or wrongdoing was reached with all of the plaintiff classes on March 23, 2022, for a total settlement amount of USD 485 Million of which USD 210 Million was borne by the Company along with its related legal charges of USD 8.3 Million pertaining to this lawsuit (equivalent to ? 16,549.6 Million inclusive of legal charges). The charge for the settlement was considered in the year ended March 31, 2022. The court granted final approval to the settlement and dismissed all of the cases in September 2022.

d) Consequent to the settlement of lawsuit mentioned in âcâ above, during the year ended March 31, 2022, the Company has reassessed the expected timing of utilisation of Minimum Alternate Tax (MAT) credit and based on this reassessment written off a MAT credit of ? 4,406.0 Million and disclosed the charge as an exceptional item.

3. Since the US FDA import alert at Karkhadi facility in March 2014, the Company has remained fully committed to implement all corrective measures to address the observations made by the US FDA with the help of third-party consultants. The Company had completed all the action items to address the US FDA warning letter observations issued in May 2014. The Company does not intend to use the Karkhadi facility for drug product manufacturing for the U.S. market. The contribution of this facility to Company''s revenues was negligible.

4. The US FDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd. (which was merged with Sun Pharmaceutical Industries Ltd. in March 2015). In addition, the United States Attorney''s Office for the District of New Jersey (US DOJ) had also issued an administrative subpoena, dated March 13, 2014, seeking information. The Company has fully cooperated and provided the requisite information to the US DOJ. All the Drug Master Files (DMF) from Toansa Facility for the U.S. market have been withdrawn, and the Company does not intend to use the facility for the U.S. market.

5. The Halol facility was placed under import alert in December 2022. US FDA has exempted 14 products from import alert, subject to certain conditions. Previously, the facility was inspected by US FDA in May 2022 and the inspection was classified as Official Action Indicated (OAI) in August 2022. The Company is in communication with the US FDA to resolve the outstanding issues underlying OAI status and import alert.

6. In September 2013, the US FDA had put the Mohali facility under import alert, and it was also subjected to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd. (which was merged with Parent Company in March 2015). In March 2017, the US FDA lifted the import alert

and indicated that the facility was in compliance with the requirements of cGMP provisions mentioned in the consent decree. The Mohali facility completed the five-year, post-certification provisions as required by the consent decree. The August 2022 US FDA inspection of Mohali facility was classified as Official Action Indicated (OAI) and subsequently, in April 2023, the US FDA issued a Non-Compliance letter to the Mohali facility. As a result, US FDA has directed the Company to take certain corrective actions at the Mohali facility before releasing further final product batches into the US. These actions include, among others, retaining an independent cGMP expert to conduct batch certifications of drugs manufactured at the Mohali facility and for shipment to the U.S. market.

7. In accordance with Ind AS 108 âOperating Segmentsâ, segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these standalone financial statements.

8. During the year ended March 31, 2022, the Company had acquired additional 11.28% stake in Zenotech Laboratories Limited (Zenotech), a subsidiary of the Company, from Daiichi Sankyo Company Ltd. for a total consideration of

? 53.2 Million pursuant to a share purchase agreement. Post this acquisition, the Company''s shareholding in Zenotech increased from 57.56 % to 68.84%.

9. The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the Government. The Company will assess the impact of these Codes and give effect in the standalone financial statements when the Rules / Schemes thereunder are notified.

10. Corporate social responsibility (CSR)

As per section 135 of the Companies Act, 2013, the Company is required to spend at least 2% of its average net profits for the immediately preceding three financial years on corporate social responsibility activities. The CSR Committee of the Company monitors the CSR activities and the projects are undertaken in pursuance of the Company''s CSR Policy and the Annual Action Plan. Company''s Annual Action Plan for the financial year 2022-23 covered CSR activities in the areas - Healthcare; Education; Environment Conservation; Drinking Water Project; Disaster Relief and Rural Development Programme.

11. On March 01, 2023, the Company disclosed an information security incident that impacted some of the Company''s IT assets. The Company promptly took steps to contain and remediate the impact of the information security incident, including employing appropriate containment protocols to mitigate the threat, employing enhanced security measures and utilising global cyber security experts to ensure the integrity of the Company''s IT systems'' infrastructure and data. As part of the containment measures, the Company proactively isolated its network and initiated recovery procedures. As a result of these measures, certain business operations were also impacted.

Based on the Company''s investigation, the Company currently believes that the incident''s effects on its IT system include a breach of certain file systems and the theft of Company data and personal data. A ransomware group has claimed responsibility for this incident.

The Company has since strengthened its cybersecurity infrastructure and is in the process of implementing improvements to its cyber and data security systems to safeguard against such risks in the future. The Company is also implementing certain long-term measures to augment its security controls systems across the organization. The Company worked with legal counsel across relevant jurisdictions to notify applicable regulatory and data protection authorities, where considered required, and the Company believes there is no material legal non-compliance by the Company on account of the information security incident. The Company believes that all known impacts on its standalone financial statements for the year ended March 31, 2023 on account of this incident have been considered.

12. The Scheme of Amalgamation and Merger of Sun Pharma Global FZE (âthe Transferorâ), with the Company (âthe Schemeâ), inter-alia envisaged merger of the transferor into the Company. The scheme was approved by Hon''ble National Company Law Tribunal, Ahmedabad Bench on August 31, 2021 and became effective on October 01, 2021 upon completion of all the formalities.

Consequent to the amalgamation and merger prescribed by the Scheme, all the assets and liabilities of the transferor were transferred to and vested in the Company with effect from January 01, 2020 (âthe Appointed Dateâ). The amalgamation was accounted under the âpooling of interestâ method prescribed under Ind AS 103 - Business Combinations, as prescribed by the Scheme.

Accordingly all the assets, liabilities, and other reserves of the transferor as on January 01, 2020 were transferred to the Company as per the Scheme. As prescribed by the Scheme no consideration was paid as the transferor is a indirect wholly owned subsidiary of the Company. The resultant difference between the book value of assets and liabilities taken-over as on the appointed date on the existing carrying value has been credited to capital reserve amounting to ? 273.3 Million. Further, as prescribed in the scheme approved by the NCLT , the Company had recorded an impact of impairment in relation to the equity shares held by the Company in the subsidiary through which the Company holds equity shares of the Transferor amounting to ? 31,590.0 Million which has been debited to capital reserve account. Also, any gain or loss on translation of assets and liabilities to functional currency (i.e. ^) till the date of order was credited or debited to foreign currency translation reserve.

13. As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries, Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively âTransferor Companiesâ), with Sun Pharmaceutical Industries Limited (âTransferee Companyâ) to be effective from such date as may be decided under the authorisation by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee Company and / or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.

15. No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

16. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

17. The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person. No trade or other receivable are due from directors of the company either severally or jointly with any other person.

18. The Company does not have any 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)

19. The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of security of current assets.

20. The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

21. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries. However , the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on arms length basis following a due approval process.

24. Relationship with Struck off Companies

The Company does not have any transactions and balances with companies which are struck off except shares held by 10 shareholders holding 11,889 shares (March 31, 2022 - 8 shareholders holding 7,653 shares) having face value of ? 1 per share.

25. Figures for previous year have been regrouped / reclassified wherever considered necessary.

Mar 31, 2022

(i) Buildings include '' 8,620 (As at March 31, 2021 : '' 8,620) towards cost of shares in a co-operative housing society and also includes '' 1.1 Million (As at March 31, 2021 : '' 1.1 Million) and '' 1,133.0 Million (As at March 31, 2021 : '' 1,133.0 Million) towards cost of non-convertible preference shares of face value of '' 10/- each and compulsorily convertible debentures of face value of '' 10,000/- each in a Company respectively entitling the right of occupancy and use of premises and also includes '' 4.5 Million (March 31, 2021 : '' 4.5 Million) towards cost of flats not registered in the name of the Company but is entitled to right of use and occupancy.

(ii) For details of assets pledged as security refer Note 48.

(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) Refer Note 54 (1)

(iii) The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow projections covering generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and Management''s expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current market assessments of time value of money. The management believes that any reasonable possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.

(i) Inventory write downs are accounted considering the nature of inventory, estimated shelf life, planned product discontinuances, price changes, ageing of inventory and introduction of competitive new products as well as the provisioning policy. Write downs of inventories amounted to ? 8,461.7 Million (March 31, 2021: ? 8,433.6 Million). The changes in write downs are recognised as an expense in the statement of profit and loss. The inventories with overseas contract manufacturers are stated as per the quantitative confirmations received from the respective parties.

(ii) For details of inventories pledged as security refer Note 48.

(iii) The cost of inventories recognised as an expense is disclosed in Notes 31, 32 and 35 and as purchases of stock-in-trade in the statement of profit and loss.

(i) Nil (upto March 31, 2021: 334,956,764) equity shares of '' 1 each have been allotted, pursuant to scheme of amalgamation, without payment being received in cash during the period of five years immediately preceding the date at which the Balance Sheet is prepared.

(ii) 7,500,000 (upto March 31, 2021: 7,500,000) equity shares of '' 1 each have been bought back during the period of five years immediately preceding the date at which the Balance Sheet is prepared. The shares bought back were cancelled.

(iii) Rights, Preference and Restrictions attached to equity shares: The equity shares of the Company, having par value of '' 1 per share, rank pari passu in all respects including voting rights and entitlement to dividend.

(ii) For details of assets pledged as security refer Note 48.

(iii) The aggregate depreciation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(i) The aggregate amortisation has been included under depreciation and amortisation expense in the Statement of Profit and Loss.

(ii) Refer Note 54 (1)

(ii) For details of inventories pledged as security refer Note 48.

(iii) The cost of inventories recognised as an expense is disclosed in Notes 31, 32 and 35 and as purchases of stock-in-trade in the statement of profit and loss.

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

Nature and purpose of each reserve

Capital reserve - During amalgamation / merger / acquisition, the excess of net assets taken, over the consideration paid, if any, is treated as capital reserve.

Amalgamation reserve - The reserve was created pursuant to scheme of amalgamation in earlier years.

recognised directly in the other comprehensive income and accumulated in foreign currency translation reserve. Exchange difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation.

NOTE : 38 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)
			'' in Million
		As at March 31, 2022	As at March 31, 2021
i Contingent liabilities
a	Claims against the Company not acknowledged as debts	567.6	556.5
b	Liabilities disputed - appeals filed with respect to :
	Income tax on account of disallowances / additions (Company appeals) *	4,125.5	24,277.6
	Sales tax on account of rebate / classification	119.9	148.4
	Goods and service tax / Excise duty / service tax on account of valuation / cenvat credit	301.4	391.4
	ESIC contribution on account of applicability	130.5	130.5
c	Drug Price Equalisation Account [DPEA] on account of demand towards unintended benefit enjoyed by the Company	3,474.2	3,488.2
d	Other matters - state electricity board, Punjab Land Preservation Act related matters etc.	90.6	90.2
Note : includes interest till the date of demand, wherever applicable

e Legal proceedings

The Company and/or its subsidiaries are involved in various legal proceedings including product liability, contracts, employment claims, antitrust and other legal and regulatory matters relating to the conduct of its business. Some of the key matters are discussed below. Most of the legal proceedings involve complex issues, which are specific to the case and do not have precedents, and, hence, for a majority of these claims, it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of the proceedings. This is due to a number of factors, including: the stage of the proceedings and the overall length and the discovery process; the entitlement of the parties to an action to appeal a decision; the extent of the claims, including the size of any potential class, particularly when damages are not specified or are indeterminate; the possible need for further legal proceedings to establish the appropriate amount of damages, if any; the settlement posture of the other parties to the litigation, and any other factors that may have a material effect on the litigation. The Company makes its assessment of likely outcome based on the views of internal legal counsel and in consultation with external legal counsel representing the Company. The Company also believes that disclosure of the amount sought by plaintiffs would not be meaningful because historical evidence indicates that the amounts settled (if any) are significantly different than those claimed by plaintiffs. Some of the legal claims against the Company, if decided against the Company or settled by the Company, may result in significant impact on its results of operations.

Antitrust - Lipitor:

The Company and certain of its subsidiaries are defendants in a number of putative class action lawsuits and individual actions brought by purchasers and payors in the U.S. alleging that the Company and certain of its subsidiaries violated antitrust laws in connection with a 2008 patent settlement agreement with Pfizer concerning Atorvastatin. The cases have been transferred to the U.S. District Court for the District of New Jersey for coordinated proceedings. Discovery commenced in January

2020, but was stayed in March 2020 pending mediation. Pursuant to the mediator''s order of June 03,

2021, briefing on certain issues was completed by March 2022, and argument on these issues will likely occur in subsequent months.

Product Liability - Ranitidine/Zantac MDL:

In June 2020, the Company and certain of its subsidiaries were named as defendants in a complaint filed in the Zantac/Ranitidine Multi-District Litigation (âMDLâ) consolidated in the U.S. District Court for the Southern District of Florida. The lawsuits name over 100 defendants, including brand manufacturers, generic manufacturers, repackagers, distributors, and retailers, involving allegations of injury caused by nitrosamine impurities. Discovery in the MDL is ongoing. On July 8, 2021, the District Court granted the generic Defendants'' motion to dismiss, the effect of which was to dismiss the Company and its affiliates with prejudice. That decision is up on appeal. In addition to the federal court proceedings, two of the Company''s affiliates also have been named as defendants in state court actions pending in Illinois, Pennsylvania, New York, and California. Finally, certain of the Company''s subsidiaries are named in three putative class actions pending in three Canadian provinces. The action pending in British Columbia is taking the lead and is in the class certification stage.

Fine imposed for anti-competitive settlement agreement by European Commission:

On March 25, 2021, the Court of Justice of the European Union (âCJEUâ) issued a final judgment and upheld the European Commission''s (âECâ) decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited (together âRanbaxyâ) with Lundbeck was anti-competitive. Ranbaxy had made a provisional payment of the fine of Euro 10.3 Million on September 20, 2013. Since there are no further rights of appeal, this amount of '' 895.6 Million (inclusive of legal charges) was provided in the standalone financial statements for the year ended March 31, 2021.

The Company may now be subject to âfollow-onâ claims in national courts of some countries. However, the Company has not yet been served with a claim detailing the alleged causation and quantum of any purported damages. Accordingly, the Company is currently unable to estimate the potential liability which may arise on account of follow-on claims. The Company also believes, based on its internal assessment and that of its independent legal counsel, that it has favourable legal arguments in terms of defending any potential damages claim.

Note:

Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

* Income tax matters where department has preferred an appeal against favourable order received by the Company amounted to '' 22,253.0 Million (March 31, 2021: '' 21,808.4 Million). These matters are sub-judice in various forums and pertains to various financial years.

ii Commitments

a Estimated amount of contracts remaining to be executed on capital account [net of advances] * b Uncalled liability on partly paid investments c Letters of credit for imports

* The Company is committed to pay milestone payments and royalty on certain contracts, however, obligation to pay is contingent upon fulfilment of contractual obligation by parties to the contract.

iii Guarantees given by the bankers on behalf of the Company

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

# These investments in equity instruments are not held for trading. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments at fair value through other comprehensive income.

There were no transfers between Level 1 and 2 in the periods.

The management considers that the carrying amount of financial assets and financial liabilities carried at amortised cost approximates their fair value.

NOTE : 43 FINANCIAL RISK MANAGEMENT

Credit risk

Investments

Trade receivables

Liquidity risk

The Company has unutilised working capital lines from banks of '' 36,030.0 Million as on March 31, 2022 (March 31, 2021 : '' 36,486.6 Million).

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and longterm debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Foreign exchange risk

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars, Euros, South African Rand and Russian Rouble). As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may decrease or increase and vice-versa. The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in the future. Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.

b) Sensitivity

For the years ended March 31, 2022 and March 31, 2021, every 5% strengthening of the Indian rupee against foreign currencies for the above mentioned financial assets/liabilities would (decrease) / increase the Company''s profit and (decrease) / increase the Company''s equity by approximately '' (651.9) Million and '' (1,310.8) Million respectively.

A 5% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.

c) Derivative contracts

The Company is exposed to exchange rate risk that arises from its foreign exchange revenues and expenses, primarily in US Dollars, Euros, South African Rand and Russian Rouble. The Company uses foreign currency forward contracts, foreign currency option contracts and currency swap contracts (collectively, âderivativesâ) to mitigate its risk of changes in foreign currency exchange rates. The counterparty for these contracts is generally a bank or a financial institution.

Hedges of highly probable forecasted transactions

The Company designates its derivative contracts that hedge foreign exchange risk associated with its highly probable forecasted transactions as cash flow hedges and measures them at fair value. The effective portion of such cash flow hedges is recorded as in other comprehensive income, and re-classified in the income statement as revenue in the period corresponding to the occurrence of the forecasted transactions. The ineffective portion of such cash flow hedges is immediately recorded in the statement of profit and loss.

In respect of the aforesaid hedges of highly probable forecasted transactions, the Company has recorded a net loss of '' 492.4 Million for the year ended March 31, 2022 and net gain of '' 1,112.4 Million for the year ended March 31, 2021 in other comprehensive income. The Company also recorded hedges as a component of revenue, gain of '' 1,128.3 Million for the year ended March 31, 2022 and gain of '' 108.6 Million for the year ended March 31, 2021 on occurrence of forecasted sale transaction.

Interest rate risk

The Company has loan facilities on floating interest rate, which exposes the Company to risk of changes in interest rates. The Company''s Treasury Department monitors the interest rate movement and manages the interest rate risk by evaluating interest rate swaps etc. based on the market / risk perception.

As at March 31, 2022 and March 31, 2021, the Company has loan facilities which are either on fixed interest rates or are managed by interest rate swaps, hence the Company is not exposed to interest rate risk.

Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases and sales of active pharmaceutical ingredients, including the raw material components for such active pharmaceutical ingredients. These are commodity products, whose prices may fluctuate significantly over short periods of time. The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s active pharmaceutical ingredients business are generally more volatile. Cost of raw materials forms the largest portion of the Company''s cost of revenues. Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies. As of March 31, 2022, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

NOTE : 44 TRADE PAYABLES

a) Disclosures under the Micro, Small and Medium Enterprises Development Act, 2006

The information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

Defined contribution plan

Defined benefit plan

a) Gratuity

The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

b) Pension fund

c) COVID-19 Employee children education support

The Company has undertaken an obligation to provide financial support towards education expenses of the children of those employees who have unfortunately lost their lives due to the COVID-19 pandemic.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate

determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

Other long term benefit plan

Actuarial Valuation for compensated absences is done as at the year end and the provision is made as per Company policy with corresponding charge to the statement of profit and loss amounting to '' 539.5 Million [March 31, 2021 : '' 423.0 Million] and it covers all regular employees. Major drivers in actuarial assumptions, typically, are years of service and employee compensation.

b) The Company has given certain premises under operating lease or leave and license agreements. These are generally not non-cancellable and periods range between 11 months to 4 years under leave and license/lease and are renewable by mutual consent on mutually agreeable terms. The Company has received refundable interest free security deposits where applicable in accordance with the agreed terms.

NOTE : 48 BORROWINGS

Details of long term borrowings and current maturities of long term debt (included under short term borrowings)

(I) Unsecured External Commercial Borrowings (ECBs) has USD Nil loan (March 31, 2021 : USD 50 Million) equivalent to '' Nil (March 31, 2021 : '' 3,657.4 Million). For the ECB loans, the terms of repayment for borrowings are as follows:

(a) USD Nil (March 31, 2021 : USD 50 Million) equivalent to '' Nil (March 31, 2021 : '' 3,657.4 Million). The loan was taken on October 03, 2018 and was repayable in 2 equal installments of USD 25 Million each. The loan has been repaid during current year. The unsecured ECBs was availed at floating rate linked to Libor (0.66% as at March 31, 2021).

(II) Secured term loan from department of biotechnology of '' Nil (March 31, 2021 : '' 75.7 Million) was secured by hypothecation of movable assets of the Company. The loan has been repaid during current year.

(III) Unsecured loan from related party of '' 48,656.4 Million (March 31, 2021 : '' 44,427.3 Million). The loan is taken on March 31, 2021 and is repayable by March 31, 2026. The loan has been availed at 6.50%.

(IV) Unsecured loan from related party of USD Nil (March 31, 2021 : USD 91.5 Million) equivalent to ? Nil (March 31, 2021 :

? 6,693 Million). The loan has been repaid during current year.

The Company has not defaulted on repayment of loan and interest payment thereon during the year.

NOTE : 49 RELATED PARTY DISCLOSURES (IND AS 24) AS PER ANNEXURE âAâ

a) Litigations [Refer Note 2 (2.2) (m) and Note 38]

b) Revenue [Refer Note 2(2.2)(n)]

c) Impairment of goodwill and intangible assets [Refer Note 2(2.2) (g)]

The Company has recorded an additional amount of '' 667.4 Million (March 31, 2021 : '' 1,520.1 Million) as deferred revenue pursuant to the requirements of Ind AS 115. Revenue of '' 1,661.5 Million (March 31,2021 : '' 1,740.5 Million) has been recognised as Revenue from contract with customer pursuant to completion of performance obligation in respect of the above contracts.

NOTE : 54

2 Exceptional items includes

a) On March 25, 2021 the CJEU (Court of Justice to the European Union) issued a final judgment and upheld the European Commission''s (âECâ) decision dated June 19, 2013 that a settlement agreement between Ranbaxy (U.K.) Limited and Ranbaxy Laboratories Limited (together âRanbaxyâ) with Lundbeck was anti-competitive. Ranbaxy had made a provisional payment of the fine of Euros 10.3 Million on September 20, 2013. Since there were no further rights of appeal, this amount of '' 895.6 Million (inclusive of legal charges) was debited to the standalone financial statement for the year ended March 31, 2021.

b) Standalone financial statements for the year ended March 31, 2022 include a charge of '' 1,655.7 Million towards impairment of an acquired intangible asset under development.

c) The Company and certain of its subsidiaries are defendants in a number of class action lawsuits brought by purchasers and payors in the U.S. alleging violation of antitrust laws with respect to its ANDAs for Valganciclovir, Valsartan and Esomeprazole. The cases were transferred to the U.S. District Court for the District of Massachusetts for coordinated

proceedings. With a view to resolve the dispute and avoid uncertainty, a settlement without any admission of guilt or violation of any statute, law, rule or regulation, or of any liability or wrongdoing was reached with all of the plaintiff classes on March 23, 2022, for a total settlement amount of USD 485 Million of which USD 210 Million was borne by the Company along with its related legal charges of USD 8.3 Million pertaning to this lawsuit (equivalent to '' 16,549.6 Million inclusive of legal charges). The settlement is subject to final approval by the Court.

d) Consequent to the settlement of lawsuit mentioned in âcâ above, during the year ended March 31, 2022, the Company has reassessed the expected timing of utilisation of Minimum Alternate Tax (MAT) credit and based on this reassessment written off a MAT credit of '' 4,406.0 Million and disclosed the charge as an exceptional item.

3 Since the USFDA import alert at Karkhadi facility in March 2014, the Company remained fully committed to implement all corrective measures to address the observations made by the USFDA with the help of third party consultant. The Company had completed all the action items to address the USFDA warning letter observations issued in May 2014. The Company is awaiting a re-inspection of the facility by the USFDA to resolve the import alert. The contribution of this facility to Company''s revenues was negligible.

4 The USFDA, on January 23, 2014, had prohibited using API manufactured at Toansa facility for manufacture of finished drug products intended for distribution in the U.S. market. Consequentially, the Toansa manufacturing facility was subject to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd (which was merged with Sun Pharmaceutical Industries Ltd in March 2015). In addition, the Department of Justice of the USA (âUS DOJ''), United States Attorney''s Office for the District of New Jersey had also issued an administrative subpoena dated March 13, 2014 seeking information. The Company continues to fully co-operate and provide requisite information to the US DOJ.

5 The December 2019 USFDA inspection of Halol facility was classified as Official Action Indicated (OAI). The Company was in continuous communication with the USFDA to resolve the outstanding issues and was awaiting a re-inspection by USFDA to resolve the OAI status. However, due to the COVID-19 pandemic and travel restrictions, the re-inspection was delayed. In April-May 2022, the USFDA inspected the Halol facility and issued Form-483 with 10 observations. The Company will be submitting a comprehensive response, including the corrective actions to be undertaken for addressing the observations, within the stipulated time to the USFDA.

6 In September 2013, the USFDA had put the Mohali facility under import alert and it was also subjected to certain provisions of the consent decree of permanent injunction entered in January 2012 by erstwhile Ranbaxy Laboratories Ltd (which was merged with parent company in March 2015). In March 2017, the USFDA lifted the import alert and indicated that the facility was in compliance with the requirements of cGMP provisions mentioned in the consent decree. The Mohali facility continues to demonstrate sustainable cGMP compliance and has completed the 5-year post certification provisions as required by the consent decree. The Company continues to receive approval of applications, manufacture and distribute products to the U.S from this facility.

7 In accordance with Ind AS 108 âOperating Segmentsâ, segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.

8 During the year, the Company has acquired additional 11.28 % stake in Zenotech Laboratories Limited (Zenotech), a subsidiary of the Company, from Daiichi Sankyo Company Ltd. for a total consideration of '' 53.23 Million pursuant to a share purchase agreement. Post this acquisition, the Company''s shareholding in Zenotech has increased from 57.56 % to 68.84 %.

9 The date of implementation of the Code on Wages 2019 and the Code on Social Security, 2020 is yet to be notified by the Government. The Company will assess the impact of these Codes and give effect in the standalone financial statements when the Rules/Schemes thereunder are notified.

10 Corporate social responsibility (CSR)

11 The Company continues to monitor the impact of COVID-19 on its business, including its impact on customers, supply-chain, employees and logistics. Due care has been exercised, in concluding on significant accounting judgements and estimates, including in relation to recoverability of receivables, assessment of impairment of goodwill and intangibles, investments and inventory, based on the information available to date, while preparing the Company''s standalone financial statements as on year ended March 31, 2022.

12 The Scheme of Amalgamation and Merger of Sun Pharma Global FZE (âthe Transferorâ), with the Company (âthe Schemeâ), inter-alia envisaged merger of the transferor into the Company. The Scheme was approved by Hon''ble National Company Law Tribunal, Ahmedabad Bench on August 31, 2021 and became effective on October 01, 2021 upon completion of all the formalities.

The amalgamation was accounted under the âpooling of interestâ method prescribed under Ind AS 103 - Business Combinations, as prescribed by the Scheme.

Accordingly all the assets, liabilities, and other reserves of the transferor as on January 01, 2020 were transferred to the Company as per the Scheme. As prescribed by the Scheme no consideration was paid as the transferor is a indirect wholly owned subsidiary of the Company. The resultant difference between the book value of assets and liabilities taken-over as on the appointed date on the existing carrying value has been credited to capital reserve amounting to ^ 273.3 Million. Further, as prescribed in the Scheme approved by the NCLT, the Company has recorded an impact of impairment in relation to the equity shares held by the Company in the subsidiary through which the Company holds equity shares of the Transferor amounting to ^ 31,590.0 Million which has been debited to capital reserve account. Also, any gain or loss on translation of assets and liabilities to functional currency (i.e. ^) till the date of order has been credited or debited to foreign currency translation reserve.

13 As part of the ongoing simplification of the group structure in India, the Board of Directors of the Company at its meeting held on May 30, 2022, approved the Scheme of Amalgamation for the merger of Wholly-owned Subsidiaries, Sun Pharmaceutical Medicare Limited, Green Eco Development Centre Limited, Faststone Mercantile Company Private Limited, Realstone Multitrade Private Limited and Skisen Labs Private Limited (collectively âTransferor Companiesâ), with Sun Pharmaceutical Industries Limited (âTransferee Companyâ) to be effective from such date as may be decided under the authorization by the Board of Directors of the Transferor Companies and the Board of Directors of the Transferee Company and / or such other date as may be approved by the National Company Law Tribunal pursuant to the provisions of Sections 230 to 232 of Companies Act, 2013 and other relevant provisions of the Companies Act, 2013 and rules framed thereunder.

15 No proceeding have been initiated or pending against the Company under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and the Rules made thereunder.

16 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

17 The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person.

18 The Company does not have any 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).

19 The Company has not been sanctioned working capital limits from banks or financial institutions during any point of time of the year on the basis of security of current assets.

20 The Company has not been declared wilful defaulter by any bank or financial institution or government or any other government authorities.

Ultimate Beneficiaries. However, the Company, as a part of its treasury operations, invests/advances loans to fund the operations of its subsidiaries/associates/ joint venture which have further utilised these funds for their general corporate purposes/ working capital, etc. within the consolidated group of the Company and in the ordinary course of business. These transactions are done on an arms'' length basis following a due approval process.

24. Relationship with Struck off Companies

The Company does not have any transactions and balances with companies which are struck off except shares held by 8 shareholders holding 7,653 shares (March 31, 2021 - 7,833 shares) having face value of ? 1 per share.

25. Figures for previous year have been regrouped / reclassified wherever considered necessary.

Mar 31, 2021

2.1 Statement of compliance

These financial statements are separate financial statements of the Company (also called standalone financial statements). The Company has prepared financial statements for the year ended March 31, 2021 in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) together with the comparative period data as at and for the year ended March 31, 2020.

2.2 Basis of preparation and presentation

The financial statements have been prepared on the historical cost basis, except for: (i) certain financial instruments that are measured at fair values at the end of each reporting period; (ii) Non-current assets classified as held for sale which are measured at the lower of their carrying amount and fair value less costs to sell; (iii) derivative financial instrument and (iv) defined benefit plans - plan assets that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

The standalone financial statements are presented in '' and all values are rounded to the nearest Million (''000,000) upto one decimal, except when otherwise indicated.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/ or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 116, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,

2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

â¢ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

â¢ Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

â¢ Level 3 inputs are unobservable inputs for the asset or liability.

The Company has consistently applied the following accounting policies to all periods presented in these financial statements.

3. Current vs. Non-current

The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is treated as current when it is:

â¢ Expected to be realised or intended to be sold or consumed in normal operating cycle

â¢ Held primarily for the purpose of trading

â¢ Expected to be realised within twelve months after the reporting period, or

â¢ Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

A liability is current when:

â¢ It is expected to be settled in normal operating cycle

â¢ It is held primarily for the purpose of trading

â¢ It is due to be settled within twelve months after the reporting period, or

â¢ There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

b. Foreign currency

On initial recognition, transactions in currencies other than the Company''s functional currency (foreign currencies) are translated at exchange rates on the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the exchange rate on that date. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous period are recognised in profit or loss in the period in which they arise except for:

â¢ exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings (see note 2.2.r).

â¢ exchange differences on transactions entered into in order to hedge certain foreign currency risks (see note 2.2.i below for hedging accounting policies).

â¢ exchange differences relating to the translation of the results and the net assets of the Company''s foreign operations from their functional currencies to the Company''s presentation currency (i.e '') are recognised directly in the other comprehensive income and accumulated in foreign currency

translation reserve. Exchange difference in the foreign currency translation reserve are reclassified to statement of profit or loss account on the disposal of the foreign operation.

Non-monetary items that are measured in terms of historical cost in foreign currency are measured using the exchange rates at the date of initial transaction.

:. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker of the Company is responsible for allocating resources and assessing performance of the operating segments.

1 Property, plant and equipment

Items of property, plant and equipment are stated in balance sheet at cost less accumulated depreciation and accumulated impairment losses, if any. Freehold land is not depreciated.

Assets in the course of construction for production, supply or administrative purposes are carried at cost, less any recognised impairment loss. Cost includes purchase price, borrowing costs if capitalisation criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other assets, commences when the assets are ready for their intended use.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of property, plant and equipment and is recognised in profit or loss.

Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the acquired asset is measured at the carrying amount of the asset given up.

Depreciation is recognised on the cost of assets (other than freehold land and Capital work-in-progress) less their residual values on straight-line method over their useful lives as indicated in Part C of Schedule II of the Companies Act, 2013. Leasehold improvements are depreciated over period of the lease agreement or the useful life, whichever is shorter. Depreciation methods, useful lives and residual values are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

The estimated useful lives are as follows:
Asset Category	No. of years
Factory Buildings	10-30
Buildings other than Factory Buildings	60
Buildings given under operating lease	30
Plant and equipment	3-25
Vehicles	5-10
Office equipment	2-5
Furniture and fixtures	10

Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, including consultancy charges for implementing the software, is capitalised as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognised as expense as incurred. The capitalised costs are amortised over the lower of the estimated useful life of the software and the remaining useful life of the tangible fixed asset.

e. Goodwill and Other Intangible assets Goodwill

Goodwill represents the excess of consideration transferred, together with the amount of noncontrolling interest in the acquiree, over the fair value of the Company''s share of identifiable net assets acquired. Goodwill is measured at cost less accumulated impairment losses.

Other Intangible assets that are acquired by the Company and that have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses, if any. Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate.

Research and development

Expenditure on research activities undertaken with the prospect of gaining new scientific or technical knowledge and understanding are recognised as an expense when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes.

An internally-generated intangible asset arising from development is recognised if and only if all of the following have been demonstrated:

â¢ development costs can be measured reliably;

â¢ the product or process is technically and commercially feasible;

â¢ future economic benefits are probable; and

â¢ the Company intends to and has sufficient resources/ability to complete development and to use or sell the asset.

The expenditure to be capitalised include the cost of materials and other costs directly attributable to preparing the asset for its intended use. Other development expenditure is recognised in profit or loss as incurred.

Payments to third parties that generally take the form of up-front payments and milestones for in-licensed products, compounds and intellectual property are capitalised since the probability of expected future economic benefits criterion is always considered to be satisfied for separately acquired intangible assets.

Acquired research and development intangible assets which are under development, are recognised as InProcess Research and Development assets (âIPR&Dâ). IPR&D assets are not amortised, but evaluated for potential impairment on an annual basis or when there are indications that the carrying value may not be recoverable. Any impairment charge on such IPR&D assets is recognised in profit or loss. Intangible assets relating to products under development, other intangible assets not available for use and intangible assets having indefinite useful life are tested for impairment annually, or more frequently when there is

impairment. If any such indication exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if any.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).

An impairment loss is recognised in the profit or loss if the estimated recoverable amount of an asset or its cash generating unit is lower than its carrying amount. Impairment losses recognised in respect of cashgenerating units are allocated to reduce the carrying amount of the other assets in the unit on a pro-rata basis.

Goodwill is tested for impairment annually. Goodwill acquired in a business combination, for the purpose of impairment testing is allocated to cash-generating units that are expected to benefit from the synergies of the combination.

In respect of other asset, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

h. Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such asset (or disposal group) and its sale is highly probable. Management must be committed

an indication that the assets may be impaired. All other intangible assets are tested for impairment when there are indications that the carrying value may not be recoverable.

The consideration for acquisition of intangible asset which is based on reaching specific milestone that are dependent on the Company''s future activity is recognised only when the activity requiring the payment is performed.

Subsequent expenditures are capitalised only when they increase the future economic benefits embodied in the specific asset to which they relate. All other expenditures, including expenditures on internally generated goodwill and brands, are recognised in the statement of profit and loss as incurred.

Amortisation is recognised on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets that are not available for use are amortised from the date they are available for use.

The estimated useful lives for Product related intangibles and Other intangibles ranges from 3 to 20 years.

The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

De-recognition of intangible assets

Intangible assets are de-recognised either on their disposal or where no future economic benefits are expected from their use. Gain or loss arising on such de-recognition is recognised in profit or loss, and are measured as the difference between the net disposal proceeds, if any, and the carrying amount of respective intangible assets as on the date of de-recognition.

f. Investments in the nature of equity in subsidiaries and associates

The Company has elected to recognise its investments in equity instruments in subsidiaries and associates at h cost in the separate financial statements in accordance with the option available in Ind AS 27, âSeparate Financial Statements''. Impairment policy applicable on such investments is explained in Note 2.2.g.

g. Impairment of non-financial assets

The carrying amounts of the Company''s nonfinancial assets are reviewed at each reporting date to determine whether there is any indication of

NOTE 2 : SIGNIFICANT ACCOUNTING POLICIES